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These definitions provide a brief description of the coverages we offer and some of the terms and phrases used in connection with auto insurance. This is not an insurance contract. Other terms, conditions, and exclusions apply. Please read the auto insurance policy for full details about the coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. Additional Interest Insured Another person or company that needs to carry liability coverage since they can be held legally liable for an accident involving an insured or an insured vehicle. It may be a leasing company, employer, title owner of the vehicle, or living trust. Add On Equipment Coverage This is a coverage offered in a limited number of states where we do not provide Custom Parts or Equipment coverages. It assures coverage for listed custom parts or equipment. You must carry both comprehensive and collision coverage. If the total value of your custom parts and equipment exceeds $5,000, please call TOLL FREE 1-877-PROG-COMsm in order to get your rate. Bodily Injury Liability Coverage Pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense if you are sued. Common Exclusions: No coverage for (1) bodily injury/death when you are using your vehicle to carry persons or property (including magazines, newspapers, food) for compensation or a fee; (2) liability assumed under a contract; (3) bodily injury/death to an employee; (4) bodily injury/death caused by an intentional act; (5) property owned by, rented to, or in the charge of an insured person; (6) bodily injury/death to you or relative; (7) bodily injury/death or property damage resulting from a relative's use of a vehicle, other than a covered vehicle, owned by a person who resides with you; or (8) bodily injury or property damage resulting from your operation or use of a vehicle owned by you, other than a covered vehicle. Collision Coverage Pays for loss to your covered vehicle when it collides with another object or overturns. We will also pay for a collision loss to any non-owned vehicle, or to a vehicle you have rented other than a vehicle rented for use in connection with your business or employment, while that vehicle is in your custody, or while you are operating it. Common Exclusions: No coverage for damages or loss (1) to a vehicle while being used to carry persons or property for compensation or a fee; (2) resulting from intention acts, racing, or preparing for a race or stunting activity; (3) customs parts or equipment, including electronic equipment, in excess of the value declared in the application; or (4) to tapes, compact discs, other media or their carrying cases. Comprehensive Coverage Pays for loss or damage to your covered vehicle caused by any event other than collision. This includes damages due to events such as fire, theft, windstorm, flood, and vandalism. We will also pay transportation and loss of use expenses under this coverage if your motor vehicle is stolen. Common Exclusions: No coverage for damages or loss (1) to a vehicle while being used to carry persons or property for compensation or a fee; (2) resulting from intention acts, racing, or preparing for a race or stunting activity; (3) customs parts or equipment, including electronic equipment, in excess of the value declared in the application; or (4) to tapes, compact discs, other media or their carrying cases. Declarations Page The copy of your policy that you receive from your insurance company listing: * your name as the first named insured; * the effective and expiration dates of your policy; * the types of coverage you have elected; * the limit for each coverage; * the cost for each coverage; * the specified vehicles covered by the policy; * the types of coverage for each vehicle covered by the policy; and * other information applicable to the policy. Deductible The amount of each loss you agree to pay. Generally, choosing a higher deductible will lower your premium. Financial Responsibility Filing (SR22) A document required by the court for persons convicted of certain traffic violations that demonstrates proof of financial responsibility. Liability Insurance Insurance for money the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person and covered by the policy. Lienholder (Loss Payee) Organization or person, such as a bank, financial institution or lender, that loaned you money to purchase your vehicle. They hold the title to the vehicle until the loan is paid. This gives them an insurable interest in the vehicle. Loan/Lease Payoff Protection This coverage protects you if your vehicle is a total loss and the amount owed by you on a loan or lease exceeds the amount we also pay under Comprehensive Coverage or Collision Coverage. This coverage pays the amount owed on the vehicle up to 25% over the actual cash value (except past due amounts and other purchased coverage, i.e. credit life, accidental life, warranty/repair.) This coverage has no deductible. This coverage is typically sold to insureds who have a new car with a new car loan, or a newly leased vehicle. Medical Payment Medical Payment coverage pays certain medical and funeral expenses resulting from a motor vehicle accident. This coverage protects anyone occupying your vehicle. It also covers you and relatives while in other vehicles or if struck as a pedestrian. These benefits are payable without regard to fault. This coverage may not be available in states that require Personal Injury Protection Benefits. Principal Exclusions are similar to those for Bodily Injury Liability Coverage (see above). Physical Damage Coverage for property damage to a vehicle insured under the "Collision Coverage" and "Comprehensive Coverage" sections of your policy. Policy Term The length of time that the policy is in force. In most states, Progressive offers annual and semi-annual policies. Property Damage Liability Coverage Pays when an insured person is legally liable for damage to the property of others caused by your vehicle your operation of most non-owned vehicles. This coverage also pays for your legal defense costs if you are sued. Common Exclusions: Same as Bodily Injury Liability Coverage exclusions (above), but the exclusions apply to damage to property. Rental Reimbursement Rental Reimbursement coverage pays expenses to rent a car if you have a loss covered under Comprehensive Coverage or Collision Coverage. Pays up to the limit selected per day for up to 30 days. SR-22 (Financial Responsibility Filing) A document required by the court for persons convicted of certain traffic violations that demonstrates proof of financial responsibility. Towing and Labor / Roadside Assistance Coverage This coverage reimburses you for emergency towing of your car when it is disabled and for emergency roadside service. Uninsured Motorist Coverage Protects you, your resident relatives, and occupants of a covered vehicle if any of these insured sustain bodily injury, including any resulting death, in an accident in which the owner or operator of a motor vehicle who is legally liable does not have insurance. Common Exclusions: No coverage for bodily injury/death sustained by any person while using or occupying a (1) covered vehicle while being used to carry persons or property for compensation or a fee; (2) a covered vehicle without the permission of you or a relative; or (3) a non-owned vehicle without the permission of the owner. Underinsured Motorist Coverage Protects you, your resident relatives, and occupants of a covered vehicle if any of these insured sustain bodily injury, including any resulting death, in an accident in which the owner or operator of a motor vehicle who is legally liable does not have enough insurance. Common Exclusions: No coverage for bodily injury/death sustained by any person while using or occupying a (1) covered vehicle while being used to carry persons or property for compensation or a fee; (2) a covered vehicle without the permission of you or a relative; or (3) a non-owned vehicle without the permission of the owner. Uninsured Motorist Property Damage Coverage Available in some states as an alternative to Collision coverage. This coverage pays you for damage to the covered vehicle that has been sustained in an accident in which the owner or operator of a motor vehicle who is legally liable does not have insurance. Common Exclusions: No coverage for property damage sustained by a covered vehicle while (1) being used to carry persons or property for compensation or a fee; or (2) a covered vehicle without the permission of you or a relative. Underinsured Motorist Property Damage Coverage Available in some states as an alternative to Collision coverage. This coverage pays you for damage to the covered vehicle that has been sustained in an accident in which the owner or operator of a motor vehicle who is legally liable does not have enough insurance. Common Exclusions: No coverage for property damage sustained by a covered vehicle while (1) being used to carry persons or property for compensation or a fee; or (2) a covered vehicle without the permission of you or a relative. Vehicle Identification Number (VIN) This number is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN number is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car. These definitions provide a brief description of the coverages we offer and some of the terms and phrases used in connection with vehicle insurance. These definitions are not applicable in all states or for all products. This is not an insurance contract. Other terms, conditions, and exclusions apply. Please read the auto insurance policy for full details about the coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. |
