Merastar Auto and Home Insurance

Auto Insurance Terms and Definitions

The following information, although a reasonable description of the coverage provided, does not constitute part of the policy or binder of insurance and shall not be construed to replace any provision of the policy itself. In the event of any conflict between the policy and this information, the provisions of the policy shall prevail. It is therefore important that you read your policy carefully for complete details.

Auto Insurance Terms

 
1.
  Bodily Injury Liability Coverage
 
2.
  Collision Coverage
 
3.
  Comprehensive Coverage
 
4.
  Medical Payments Coverage
 
5.
  Personal Injury Protection
 
6.
  Property Damage
 
7.
  Underinsured Motorist Bodily Injury Coverage
 
8.
  Underinsured Motorist Property Damage Coverage
 
9.
  Uninsured Motorist Property Damage Coverage
 
10.
  Uninsured Motorist Bodily Injury Coverage
 
11.
  Accidents
 
12.
  Delivery or commercial use
 
13.
  Driving experience
 
14.
  Senior operator discount
 
15.
  Violations
 
16.
  Good student discount
 
17.
  Anti-theft active disabling device
 
18.
  4 wheel anti-lock brakes
 
19.
  Airbag
 
20.
  Anti-theft passive disabling device
 
21.
  Automatic seat belts
 
22.
  Door, hood, glass and trunk sensors
 
23.
  Homing device
 
24.
  Modified or customized
 
25.
  Unrepaired damage
 
26.
  Vehicle Identification Number (VIN)
 
27.
  VIN etchings
 
28.
  Limits
 
29.
  Premium
 
30.
  Rental Reimbursement Coverage
 
31.
  Towing Coverage

Auto Insurance Definitions

  1.   Bodily Injury Liability Coverage
Bodily Injury Liability Coverage covers you for accidental bodily injury, which you or the driver of your vehicle causes to someone else.

If you are found to be at fault for an accident and legally responsible for the injuries caused to the other party this coverage will compensate that person for their injuries up to a limit of coverage which you have chosen.

If you are sued because of a covered automobile loss, the cost of your legal defense is also covered.

  >>   back to questions
 
 
  2.   Collision Coverage
Collision Coverage is an optional coverage which provides for repairs for damages to your vehicle due to upset or when it collides with another object, such as a vehicle or object.

While this is an optional coverage, most auto lease and finance agreements require you to purchase this coverage to ensure the car will be repaired or replaced after a loss.

  >>   back to questions
     
 
  3.   Comprehensive Coverage
Comprehensive Coverage is an optional coverage, which provides coverage for damage to your vehicle resulting from something other than a collision.

Examples of some causes of damage covered by comprehensive coverage are fire, flood, theft, hail, or impact with a bird or animal.

Although this is an optional coverage, most auto lease and finance agreements require you to purchase this coverage to ensure the car will be repaired or replaced after a loss.

  >>   back to questions
       
 
  4.   Medical Payments Coverage
Medical payments coverage provides for reasonable expenses to cover medical and funeral services of a covered person injured in an auto accident.

Medical payments coverage applies regardless of who is at fault.

This coverage is not available in all states.

  >>   back to questions
       
 
  5.   Personal Injury Protection
Personal Injury Protection (PIP) or “No-Fault” benefits cover you, your family members and sometimes your passengers or pedestrians who may be struck by your vehicle, for medical expenses related to injuries as a result of an auto accident regardless of who is at fault.

This coverage may also provide for Lost Wages, Essential Services, Rehabilitation, and other costs associated with an auto related injury.

This coverage is not available in all states but is usually mandatory in states, which have no-fault laws. Limits and restrictions vary by state.

  >>   back to questions
       
 
  6.   Property Damage
Property Damage Liability coverage covers you when you are legally responsible for accidental property damage caused by you or the driver of your car to someone else’s property. This coverage will pay for the repairs to that property up to the limit of coverage chosen by you. Property damage means damage to or destruction of another person's tangible property, including loss of its use (e.g. other car, fence, lamppost, etc.). If you are sued because of the accident, this coverage also covers the cost of your legal defense.
 
  >>   back to questions
       
 
  7.   Underinsured Motorist Bodily Injury Coverage
Underinsured Motorist Bodily Injury coverage covers you and your passengers for bodily injury sustained in an auto accident due to the negligence of an underinsured owner or driver (someone who has auto insurance but not enough coverage to pay for all your damages), up to the limit of coverage you have chosen. In some states, there may also be Underinsured Motorists Coverage available for property damage to your vehicle. This coverage is required in many states.
  >>   back to questions
       
 
  8.   Underinsured Motorist Property Camage Coverage
Underinsured Motorist Property Damage Coverage provides coverage for your vehicle in the event of damages sustained in an auto accident due to the negligence of an underinsured owner or driver (someone who has auto insurance but not enough coverage to pay for all your damages), up to the limit of coverage you have chosen.
  >>   back to questions
       
 
  9.   Uninsured Motorist Property Damage Coverage
Uninsured Motorist Property Damage Coverage covers your vehicle for damage sustained in an accident due to the negligence of an uninsured owner or driver, up to the limit of coverage you have chosen. In most states there is a deductible applied to this coverage and it may not be available if you carry collision coverage on your auto. This coverage is required in many states.
  >>   back to questions
       
 
  10.   Uninsured Motorist Bodily Injury Coverage
Uninsured Motorist Bodily Injury Coverage covers you and your passengers for bodily injury sustained in an auto accident due to the negligence of an uninsured owner or driver up to the limit of coverage you have chosen. This coverage is required in most states.
  >>   back to questions
       
 
  11.   Accidents
An accident is an unintended occurrence which involves you or another driver of your vehicles that resulted in damages to property and/or bodily injury.
  >>   back to questions
       
 
  12.   Delivery or commercial use
Vehicles used for delivery of passengers, food, wholesale or retail items are not eligible for coverage under the personal auto policy.

To be eligible for coverage under a personal auto policy, the vehicle must not be owned by a business or corporation.

  >>   back to questions
       
 
  13.   Driving experience
The person(s) who will be the owner of this policy must have a minimum of three years verifiable driving experience (five years in Texas) with at least the last 18 months being in the United States or Canada. Verifiable means we must be able to obtain a driving record report.
  >>   back to questions
       
 
  14.   Senior operator discount
A discount for a principal operator who is age 55 or older and has received a certificate of completion within the past 36 months from a voluntary Motor Vehicle Accident Prevention Course approved by the appropriate authority within your state. This discount is not available in all states.
  >>   back to questions
       
 
  15.   Violations
Violations are tickets or citations issued to a driver who violates a traffic law while operating a vehicle. Examples are speeding, disobeying a traffic control device, and operating a vehicle under the influence of drugs or alcohol.
  >>   back to questions
       
 
  16.   Good student discount
A young driver age 16 to 24 who is enrolled as a full-time student with a B average or better or who is a graduate of a 4 year college or university. You will be asked to provide a copy of a most recent grade report or diploma.
  >>   back to questions
       
 
  17.   Anti-theft active disabling device
A device that helps prevent vandalism to or theft of a motor vehicle or its contents. The active disabling device requires the driver to manually activate it.
  >>   back to questions
       
 
  18.   4 wheel anti-lock brakes
Anti-lock brakes (ABS) - a braking system in a vehicle, which pumps the brakes automatically (many times per second) to prevent locking of the brakes, enabling a driver to maintain control of the vehicle.
  >>   back to questions
       
 
  19.   Airbag
An automatic restraint system that requires no action on the part of the vehicle occupants. Air bags are loss-reduction devices stored in the dash and/or steering column, which are designed to inflate in moderate and severe front end, crashes.
  >>   back to questions
       
 
  20.   Anti-theft passive disabling device
A device which helps prevent vandalism to or theft of a motor vehicle or its contents. A passive anti-theft device is one, which arms itself automatically when a vehicle is parked.
  >>   back to questions
       
 
  21.   Automatic seat belts
Automatic restraint systems, which require no action on the part of the occupants of the vehicle. Automatic seatbelts are those which belt the driver and/or the vehicle front seat passenger in when the vehicle door closes or the vehicle is started.
  >>   back to questions
       
 
  22.   Door, hood, glass and trunk sensors
Mechanical devices that activate the alarms if the vehicle is tampered with in these areas.
  >>   back to questions
       
 
  23.   Homing device
Homing devices or stolen vehicle recovery systems are independently operated systems, which automatically notify a monitoring system if the vehicle is started by any means other than through the use of an ignition key.
  >>   back to questions
       
 
  24.   Modified or customized
Modified means the addition of non-factory installed turbochargers, spoilers, or special exhaust systems. Customized means the addition of equipment, special paint or graphics to personalize the vehicle. This includes factory-installed options such as captains’ chairs, snack tables and appliances.
  >>   back to questions
       
 
  25.   Unrepaired damage
Unrepaired damage is damage to your vehicle which pre-exists your date of loss or coverage request (for example; prior accident damage, hail damage, broken or cracked windows)
  >>   back to questions
       
 
  26.   Vehicle Identification Number (VIN)
The specific number assigned to the vehicle by the manufacturer. This number may be found on the registration, title, inside the driver's door on a silver tag on some models or on the small plate at the base of the windshield in front of the steering wheel.
  >>   back to questions
       
 
  27.   VIN etchings
Permanently marked vehicle identification number on at least two windows of the vehicle other than the small vent windows.
  >>   back to questions
       
 
  28.   Limits
Maximum amount a policy will pay either overall or under a particular coverage.
  >>   back to questions
       
  29.   Premium
The amount of money an insurance company charges for insurance coverage.
  >>   back to questions
       
  30.   Rental reimbursement coverage
Rental Reimbursement helps cover the costs you incur for renting a car when your vehicle is disabled due to an auto accident. You must purchase Comprehensive coverage to have this coverage on your vehicle.
  >>   back to questions
       
  31.   Towing coverage
Towing helps pay the costs you incur for having your vehicle towed from the scene of a breakdown. You must purchase Comprehensive coverage to have this coverage on your vehicle.
  >>   back to questions
       

Helpful Information

About Kemper Select's Auto Insurance
Common Auto Insurance Questions
Get an Auto Insurance Rate Quote

About Kemper Select's Home Insurance
Common Home Insurance Questions
Home Insurance Terms and Definitions
Get a Home Insurance Rate Quote

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