Insurance Definitions: P-R
Personal Injury Protection (PIP) Coverage
PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle. PIP is the basic coverage implemented in no-fault automobile insurance states.
Policy Expiration DateYour current insurance policy ends on your policy expiration date, which is found on your current policy documents, Declarations Page (Dec Page), insurance identification card or recent cancellation notice. This date should not be confused with payment due dates.
Policy TermThe length of time your policy is active and in force is your policy term.
PremiumA premium is the amount of money paid to an insurance company in return for insurance protection.
Primary Residence A primary residence is the place where you will live for the majority of your policy term. Primary UsePrimary use is how you mainly use your vehicle. Primary use options include to/from work, business, pleasure or farm use.
Principal DriverThe person who drives the car most often is the principal driver.
Property Damage Liability Coverage (PD)If an insured person is legally liable for an accident, PD coverage pays for damage to others' property resulting from the accident. PD also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.
Rental Reimbursement CoverageRental Reimbursement provides rental car coverage if you have a claim that is covered under Comprehensive or Collision coverage. Daily rental amounts are subject to the limit purchased.
Roadside Assistance CoverageRoadside Assistance provides services such as towing, flat tire change, locksmith service and battery jump-start to customers, who can elect the service for an additional premium if it is not already included with their insurance policy.