Insurance Terms

Florida’s minimum coverage is $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL) as long as you have a valid Florida license plate.


Automobile Liability Insurance

Protects an insured against loss rising out of legal liability when his or her car injures others or damages their property.  Automobile Liability Insurance includes Bodily Injury Liability and Property Damage Liability.

Automobile Physical Damage Insurance

Collision and Comprehensive coverages in the automobile insurance policy.

Bodily Injury Liability Coverage

Protects an insured against legal liability for injury to another person arising from an accident.


The discontinuance of an insurance policy before its normal expiration date.


A request for payment for a loss which may come under the terms of an insurance contract.  A first-party claim is one made by the policy holder for reimbursement by his or her company.  A third-party claim is one by a person against a policyholder of another company and the payment, if any, will be made by that company.

Collision Insurance

Protection against loss resulting from any damage to the policyholder’s car caused by collision with another vehicle or object, or by upset of the insured car, whether it was the insured’s fault or not (other than his/her own willful act). This does not cover other people’s property.

Comprehensive Automobile Insurance

Protection against loss resulting from damage to the insured’s auto, sometimes referred to as “other than collision” coverage.  Includes protection from such hazards as theft,  fire, glass damage, wind, hail and malicious mischief or vandalism.  This is a first party coverage.


The scope of protection provided under a contract of insurance.


A provision in an insurance contract stating that the insurer will pay that amount of any insured loss that is in excess of a specified amount. The  specified amount is the deductible.

Effective Date

The date shown on the declarations page of when the policy coverage begins.


Not a part of the original insurance contract, which cites certain terms and becomes a legal part of that insurance contract.  For example, add or remove a vehicle, add or remove a driver.


A provision in the insurance contract that eliminates coverage for certain risks, people, property classes or locations.

Expiration Date

The date shown on the declarations page of the policy when coverage will stop.  It may be a specific date or statement that converage is continuous until cancelled.


A person covered by an insurance policy.

Liability Insurance

Protection for the insured against loss arising ot of hi or her legal liability ot third parties.

Personal Injury Protection Automobile Insurance  (PIP)

First-party coverage in no-fault states that pays for medical expenses, loss of income and certain expenses resulting from an automobile accident.


Name used to mean the written contract of insurance.


The named insured who owns an insurance policy.


The amount of money charged to a policyholder for an insurance policy.

Property & Casualty Insurance

Covers damage to or loss of policyholders’ property and legal liability for damages caused to other people or their property.

Property Damage Liability Insurance

Protection against loss from legal liability for damage to the property of another.

Rental Reimbursement Coverage

Provides coverage for the cost of a rental vehicle up to a certain limit per day, per incident after your car has been damaged in an auto accident.


Also known as policy term.  The period of time for which a policy is issued.

Total Loss

The condition of an automobile when damage is so extensive that repair costs would exceed the value of the vehicle.

Towing Coverage

Insures against charges for towing and road service at the place of disablement, with a maximum amount stipulated for each occurrence.

Uninsured Motorist Coverage (UM)

Pays the policyholder and passengers in his/her car for losses sustained by reason of bodily injury, sickness, disease or death caused by the owner or operator of an uninsured automobile or a “hit-and-run” driver.

Uninsured Motorist Property Damage Coverage (UMPD)

Provides coverage to a vehicle involved in an accident with an uninsured motorist. UMPD is similar to “collision coverage,” and is not available to those who purchase collision coverage.