Underinsured Motorists Coverage

Insurance that covers damages caused by motorists who meet the state's minimum insurance requirements but still do not have enough coverage to satisfy damages.
 
 

Unsatisfied Judgment Fund

Many states have funds that reimburse victims injured in automobile accidents who are unable to collect from the liable party.
 
 

Usage

Refers to the purpose for which you use your vehicle. Different rates are established for different usages. Example usages include "pleasure," "commute," and "business."
 
 

Medical Payments Coverage

Insurance coverage that pays for damages sustained to the insured and his or her passengers without regard to fault. Also pays for damages suffered by the insured and covered family members for injuries sustained as a pedestrian at the hands of non-exempt vehicles.
 
 

No-Fault Insurance

Type of insurance in which the insured's own insurance company provides indemnity for damages sustained to the insured's own person and property without regard to fault. The purpose of no-fault insurance is to expedite the insurance claims process and keep cases from clogging the legal system.
 
 

No-Fault State

Any state that has at least some form of no-fault insurance as a matter of law. No state has "pure" no-fault insurance, but Michigan comes the closest.
 
 

Non-Passive Alarm

Alarm in which action on your part is required in order for it to be activated. Most insurers will offer a discount if your automobile is armed with a non-passive alarm - but a slightly greater discount if it has a passive alarm.
 
 

Passive Alarm

Alarm in which your action is not necessary in order for it to be activated. Most insurers will offer discounts for cars armed with passive alarm systems that are even greater than cars with non-passive alarms.
 
 

Personal Auto Policy

Standard car insurance policy contract that includes liability, medical payments, uninsured motorist, and physical damage protection.
 
 

Physical Damage

Refers to damage to your vehicle. Such damage is normally covered by either collision or comprehensive insurance.
 
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