Arizona Auto Insurance Glossary

Bodily Injury Liability coverage protects you if you are held responsible for injuring someone in a car accident. Whether or not that person was in another vehicle, on a bicycle, was a pedestrian, etc. This coverage helps pay for the injured party's medical expenses and lost wages and is limited to the amount of Bodily Injury Coverage you have on your Auto Insurance Declarations Page. Bodily Injury Liability may also help pay your expenses in a related lawsuit.

Property Damage Liability coverage protects you if you are held responsible for damaging someone else's property in a car accident. This includes property in addition to vehicles, such as fencing, home, personal property, etc. Property Damage Liability is limited to the amount of coverage you have on your Auto Insurance Declarations Page.

Medical Payments coverage pays medical bills and/or funeral expenses for the driver or any passengers who are injured or killed while in an insured vehicle, regardless of fault in an accident. Some auto insurance policies will also provide this coverage for policyholders and their family members who maybe a pedestrian, on a bicycle, or even in another car. Please check with your agent to verify coverage. Medical Payment are limited to the amount of coverage you have on your Auto Insurance Declarations Page.

Uninsured Motorist Bodily Injury coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who has no car insurance or if you are a victim of a hit-and-run accident. Uninsured Motorist Bodily Injury coverage is limited to the amount of coverage you have on your Auto Insurance Declarations Page.

Underinsured Motorist Bodily Injury coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who does not have enough auto insurance coverage. Underinsured Motorist Bodily Injury coverage is intended to cover the difference between the coverage limit you select and the other driver's Bodily Injury Limit. Underinsured Motorist Bodily Injury coverage is limited to the amount of coverage you have on your Auto Insurance Declarations Page.

Comprehensive coverage helps pay for damage to your car resulting from fire, theft, vandalism, and many other types of claims, that would not otherwise be covered under your Collision coverage. This includes if you were to hit an animal with your covered vehicle. Most insurance companies will provide you with a list of vehicle repair facilities if your vehicle is deemed to be repairable. Or, the insurance company will typically provide you with the Actual Cash Value of your vehicle, at the time of the accident. The deductible that you choose on your policy per vehicle will apply.

Collision coverage helps pay for auto repair or replacement costs if your car hits another vehicle, stationary object or if your car rolls over. The deductible that you choose on your policy per vehicle will apply.

Rental Car Reimbursement is an optional coverage that helps pay for your rental car expenses if an insured car is damaged or stolen and you need a rental car.

An SR-22 is an official document that shows proof of financial responsibility. Motor Vehicle Departments may require an SR-22 or a similar form for people convicted of certain traffic violations.

Towing coverage is optional, and pays either a fixed amount or reasonable expenses toward towing, if your car breaks down or if it's disabled in an accident. Please check with your insurance company to verify the amount and benefits of this coverage. Some companies will include locksmith services under your towing coverage.

Your car's actual cash value is calculated by determining its original value, minus the amount your car has depreciated since you bought it or since it was new.

The Deductible is the amount of damages you agree to pay for if you file an auto insurance claim. Consult with your insurance professional, as choosing a higher deductible can substantially lower your auto insurance premium, although, if you file a claim, you'll have to pay the chosen deductible to receive payment from your auto insurance company. In some cases lower deductibles maybe more cost effective, depending on your insurance rates.

Your Declarations Page of your policy summarizes the coverage information essential to your auto insurance coverage: the policyholder's name and address, a description of the insured vehicles, the auto insurance premium, as well as the coverages (those required by law and optional), limits, and deductibles.

Endorsements are changes to the original insurance contract. In auto insurance coverage, endorsements may include changing your deductibles or adding a new driver or vehicle to your auto insurance policy.

Exclusions are situations that are not covered by a given auto insurance policy. Specific exclusions are listed in your auto insurance policy.

If your car is vandalized or stolen, it should be reported to your auto insurance company; however, items stolen from your vehicle are usually covered under your homeowners insurance, while the vehicle itself is likely covered by your auto policy.

Insurance scores are based on analytical models that objectively measure the relative likelihood of future insurance losses based on your credit history. Most insurance companies have adapted to some type of insurance scoring in order to apply the appropriate discounts and/or surcharges to your specific policy. These scores are provided by independent consumer reporting agencies, to the insurance companies.

A Motor Vehicle Report (MVR) provides information on your driving record, including tickets, possible accidents, suspensions, etc. Auto insurance companies obtain MVRs from states where you or other insured drivers have been licensed to drive and this information is used to determine the appropriate rate for your insurance policy.

*These definitions are not meant to be taken in place of your policy language. Instead the definitions are meant to help guide you to what coverages are available on an auto insurance policy. Please consult your agent or your policy for the insurance coverage specifics.