Vehicle Insurance Coverage Definitions

Personal Automobile Coverage

All-Terrain Vehicle Coverage

Boat/Personal Watercraft Coverage

Camper/RV Coverage

Classic Car Coverage

Golf Cart Coverage

Motorcycle/Moped/Scooter Coverage

Snowmobile Coverage

Insurance Termiology


Personal Automobile Coverage

These coverages help protect you, your passengers, or other people on the road in the event of an accident.

Bodily injury liability: If you cause an accident and someone is injured, this coverage can help pay their medical bills and loss of income.

Property damage liability: If you cause an accident, this coverage helps pay for damages to another person’s vehicle or property.

Personal injury protection: With standard auto liability insurance, the insurance company of the driver responsible for an accident pays the costs resulting from a covered accident (up to the policy’s limits). Personal injury protection is a “no-fault” coverage and is required in some states. "No-fault" means that regardless of which driver was at fault, some of the medical expenses for the policyholder and others in the policyholder’s car may be covered by insurance.

Uninsured motorist: Helps protect you and your vehicle from uninsured drivers and hit-and-run accidents.

Underinsured motorist: Helps protect you from drivers who do not have enough insurance to cover the costs of an accident.

Medical payments: Also known as med pay, helps pay medical costs for you and your passengers in the event of a covered auto accident.

Vehicle coverages

These coverages help you with repairing any damage done to your vehicle or another driver’s, as well as providing additional resources if you can no longer use your own car.

Collision: Regardless of who’s at fault, collision can pay for damage to your vehicle if you hit another vehicle or object, another vehicle hits you, or your vehicle rolls over.

Comprehensive: Also known as “other than collision,” this coverage can help pay for damage to your vehicle from vandalism, theft, weather events and accidents involving animals.

Towing and labor coverage: This coverage can help when your car is stuck, broken down or inoperable due to an accident.

Rental car expense: This coverage provides access to a rental car or other transportation while your car is in the repair shop after a covered accident. Also known as loss of use or transportation expenses.

Gap coverage: If your car is a total loss after an accident, this coverage may pay the difference between the actual cash value and what you owe on the lease or loan.


All-Terrain Vehicle (ATV) Coverage

ATV insurance coverage can help protect you in the event of an accident or other type of damage. An ATV insurance policy typically consists of liability, collision and comprehensive coverage options, as well as add-on coverages such as uninsured/underinsured ATV coverage. Like other types of powersports insurance, the amount of coverage you have depends on the policy limits you select.

Bodily injury liability: If you cause an accident and someone is injured, this coverage can help pay their medical bills and loss of income. Check your state laws to see if it’s required for your situation.

Property damage liability: Assists in payments for damages to another person’s vehicle or property, if you cause an accident.

Collision: Collision pays for damage to your ATV if you hit another vehicle or object, another vehicle hits you, or your vehicle rolls over. It also includes up to $2,000 for safety apparel. Collision coverage may be required if you lease or finance your ATV.

Comprehensive: This coverage can help pay for damage to your ATV from vandalism, theft, weather events and accidents. It also protects custom ATV parts and equipment.

Uninsured motorist: Helps protect you and your ATV from uninsured drivers and may also protect you from covered hit-and-run accidents. Each state has its own uninsured motorist laws.

Underinsured motorist: Helps protect you from drivers who do not have enough insurance to cover the costs of an accident.

Medical payments: Also known as Personal Injury Protection (PIP), med pay can help cover medical costs related to an accident, regardless of who’s at fault.

OEM endorsement: This coverage helps ensure that your ATV is repaired with new parts from the original equipment manufacturer (OEM), whenever available. If an OEM part is not available, we’ll issue payment based on the fair market.


Boat / Personal Watercraft Coverage

Boat liability insurance covers several different financial obligations you may have if you are responsible for an incident that results in harm or damage to other people or property. Depending on the policy and the choices you make, this coverage can include:

Property damage liability: Covers harm done to another person’s boat, dock, water skis or other possessions

Bodily injury liability: Covers the costs associated with one or more person(s) injuries, such as medical expenses, hospitalization and rehabilitation

Pollution liability: Covers you in the event of a fuel spill

Wreckage removal: Covers your legal obligation to remove debris after an incident.


Camper/RV Coverage

Bodily injury liability: If you cause an accident with your RV and someone is injured, this coverage can help pay their medical bills and loss of income. Most states require liability coverage.

Property damage liability: If you cause an accident, this coverage helps pay for damages to another person’s vehicle or property. Most states require liability coverage.

Collision: Regardless of who’s at fault, collision pays for damage to your RV or motorhome if you’re in an accident with another vehicle. Collision also covers RV or motorhome rollovers. If you finance or lease your vehicle, collision may be required.

Comprehensive: Also known as “other than collision,” this coverage can help pay for non-collision damage to your RV. This includes damage from vandalism, theft, failing objects, fire, storms, floods and certain other natural disasters.

Uninsured Motorist: This RV coverage helps protect you against drivers who don’t have liability insurance or lack the money to pay for injuries and damages they cause to you, your passengers or your RV. This coverage may also protect you from covered hit-and-run accidents. Each state has its own uninsured motorist laws. Coverage is subject to policy coverage provisions and limits.

Underinsured motorist: Protect yourself against underinsured drivers. Each state has its own uninsured motorist laws. Coverage is subject to policy coverage provisions and limits.

Medical Payments: No matter who’s at fault, med pay can help cover medical bills for you and your passengers if your RV is involved in an accident.

Optional RV insurance coverages

Roadside assistance: Get 24/7 emergency help if you need fuel, a tire change, a jumpstart or a tow. Roadside Assistance also covers any trip interruption expenses that happen when you’re more than 50 miles away from home.

Towing & labor: Covers towing and labor, as well as trip interruption expenses such as lodging, transportation and meals.

Vacation liability: Provides protection if an accident happens on the premises while the RV is being used as a temporary residence. We’ll provide up to $10,000 in coverage with any pleasure-use RV that has physical damage coverage under both comprehensive and collision coverages.

Safety glass replacement: This coverage will pay to replace the windshield for your RV or motorhome.

Replacement cost and scheduled personal effects

These coverages are provided as primary insurance for both pleasure and full-time RVers. This policy pays before any other policy to limit the need to file a homeowners insurance claim.


Classic Car Coverage

Agreed Value Coverage: Standard car insurance policies are based on the actual cash value of your car, which factors in depreciation. So if your car was totaled, you'd receive a payout for its value at the time of the accident, not its original purchase price amount. However, classic cars typically appreciate over time. With an agreed value policy, your insurer agrees or guarantees the value of your car. If your car was totaled, you'd receive the agreed value of the car. Some insurers also offer online tools to help you correctly value your vehicle,

Spare Parts Coverage: This perk protects you from damage of replacement parts and is ideal for rare car models with hard to find parts.

Inflation Guard: This feature increases your protection limits for no extra cost as your car appreciates in value, typically by 4 % to 6% of its value.


Golf Cart Coverage

Guest passenger liability: A common coverage option on motorcycle policies, guest passenger liability insurance works the same way for golf carts. If a passenger is injured in an accident, this coverage provides a specific limit for their claims.

Bodily injury liability: If you cause an accident and someone is injured, this coverage can help pay their medical bills and loss of income. Our bodily injury liability automatically includes coverage for guest passengers.

Property damage liability:This coverage helps pay for damages to another person’s vehicle or property, if you cause an accident.

Collision: Collision pays for damage to your golf cart if you hit another vehicle or object, another vehicle hits you, or your golf cart rolls over.

Comprehensive: Also known as “other than collision,” this coverage can help pay for damage to your golf cart from vandalism, theft, weather events and falling objects.

Uninsured motorist: Helps protect you and your golf cart from uninsured drivers and hit-and-run accidents.

Underinsured motorist: Helps protect you from drivers who do not have enough insurance to cover the costs of an accident.

Medical payments: Medical payments can help cover medical costs for you and your passengers.

Optional golf cart insurance coverages

Custom equipment: Custom equipment coverage insures aftermarket parts and equipment that were installed after the golf cart left the manufacturer. This includes updates like custom bodies, lift kits and engine modifications.

Roadside Assistance: Provides help with a flat tire, a jump or a tow.


Motorcycle Coverage

Bodily injury liability coverage: Helps cover things like medical expenses and lost wages that result from the injury or death of another driver when you're at fault. In some states, this liability extends to passengers on your motorcycle, too. In other states, guest passenger liability may be offered as a separate coverage. Note that this coverage does not pay for your own medical bills.

Property damage liability coverage: Helps cover damage to another person's property when you are at fault. For instance, it may help pay for repairs if you damage other vehicles, private residences, storefronts or other structures. This coverage does not pay for repairs to your own bike.

Medical payments coverage: Helps cover reasonable and necessary medical expenses, like ambulance rides and X-rays, that are the result of an injury to you or your passengers on your motorcycle.

Personal injury protection: This type of coverage can help reimburse you for medical bills, lost income, funeral expenses, childcare, and more if you're hurt in an accident. This protection is not available in all states.

Collision coverage: Covers damage to your motorcycle that result from a collision with another object, which can include a car or a motorcycle, a tree or a building. You can choose your own deductible for this coverage.

Comprehensive coverage: Covers damages to your motorcycle not caused by a crash with another vehicle or other object — things like flooding, wind, vandalism and theft. You're typically covered for repairs up to the actual cash value of your bike. Plus, you get to choose your deductible.

Uninsured/underinsured motorist bodily injury coverage: If you get into an accident on your motorcycle and an uninsured or underinsured driver is at fault, this covers your injuries as well as your passenger's.

Towing and labor coverage: Reimburses you for the costs of towing and related labor if your motorcycle breaks down or you get in an accident.

Rental reimbursement coverage: Helps cover the cost of a rental if your bike is stolen or being repaired in a shop.

Motorcycle and off-road vehicle transport trailer damage coverage: Covers damage and loss of your trailer and motorcycle resulting from collision, rollover and most natural and man-made losses, such as earthquakes and vandalism.

Lease/loan gap coverage: If your bike gets totaled or stolen, this pays the difference between what your motorcycle is worth and what you still owe on your loan or lease. To get gap coverage, you need to have comprehensive and collision on the same policy.

Optional or added equipment coverage: Some companies will provide a set amount of coverage for aftermarket upgrades such as custom seats, crash bars and fairings.


Snowmobile Coverage

Bodily injury liability: If you injure someone in an accident with your snowmobile, this typically covers their medical expenses.

Property damage liability: If you accidentally damage another person's property, this coverage can help pay for repairs to property and belongings like vehicles, homes and buildings.

Collision coverage: This coverage helps reimburse you for the cost of repairing your snowmobile after a collision with an object, such as another snowmobile or a tree.

Comprehensive coverage: This coverage helps you cover expenses related to damages caused by something other than a collision, such as flooding, wind, vandalism or theft.


Insurance Coverage Terminology

Choosing the right coverage options can feel complicated. We’re here to help you understand the ins and outs, so you can be confident you have the right protection.

Deductible: This is the portion of a claim that you pay. A higher deductible amount will lower your insurance premiums but increase your costs if there’s an accident.

Premium: This is the cost of your policy. It may be paid annually, semi-annually (two payments per year) or monthly.

Liability: Liability is the legal obligation or responsibility for any injury or damage suffered by another person.

Limit of liability: This is the maximum amount of coverage under an insurance policy.


Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Discounts may not be applied to all policy coverages.