Automobile Insurance Terms

 

Liability:

Automobile liability insurance consists of Bodily Injury Liability and Property Damage Liability:
Bodily Injury Liability provides coverage if you or a covered driver is legally liable in an auto accident in which others are injured or killed.  The State of Oklahoma requires Automobile Bodily Liability  with a minimum coverage amount of $25,000 per person and $50,000 per accident (25/50).  This basically means that if you are at fault in an auto accident and injure someone, your Bodily Injury Liability would pay a maximum amount of  $25,000 for the injured persons medical bills, pain and suffering, lost wages, etc.  If two or more people were injured, the 25/50 policy would pay a maximum of $50,000 for all injuries that were sustained as a result of your negligence.

Property Damage Liability provides coverage if you or a covered driver is legally liable for damages to another's property resulting from an auto accident.  The State of Oklahoma requires Automobile Property Damage Liability  with a minimum coverage amount of $25,000.

The minimum required liability coverage in Oklahoma is referred to as 25/50/25.  As noted above, the first number (25) indicates the maximum paid for bodily injury per person, the second number (50) indicates the maximum paid for all injuries if more than one person was injured, and the third number (25) is the maximum amount paid for property damage.  If you are found at fault in an accident and have less liability coverage than needed to cover all of the damages, you are responsible for damages in excess of the liability limit you selected.


Uninsured Motorist Coverage:
Uninsured Motorist Coverage provides coverage if you, covered family members, or your covered passengers are injured or killed in an accident involving a legally liable uninsured driver.  (Uninsured Motorists Coverage for Property damage is not available in Oklahoma.)  Uninsured Motorist Coverage is not required in Oklahoma but is STRONGLY recommended.  Depending on what Bodily Injury (BI) Liability Limits you choose to carry, you have several options with the Uninsured Motorist (UM) Coverage .  You can carry as much UM as you carry on your BI, you can choose to carry less than your BI, you can carry the state minimum of 25/50 UM, or you can reject the coverage.

People are constantly confused by this coverage.  Some people tell us "they aren't going to buy uninsured motorist coverage to cover the people that don't have insurance!"  Others say "I never let anyone drive my car that doesn't have insurance."   This is not what this coverage is about!  This coverage pays for YOUR bodily injury, pain & suffering, lost wages, if you are involved in an accident in which you are not at fault and the person that was at fault did not have Liability Insurance.

If the person at fault in an auto accident had Liability Insurance but did not have enough coverage to pay your complete loss, your Uninsured Motorist Coverage may become Underinsured Motorist Coverage if your UM Coverage Limits are more than the liable parties Liability Limits.

This coverage may also be available to you and your resident family members while riding in a car driven by someone else.  If a covered member of your household is a passenger in a car that belongs to someone else and is injured as a result of an auto accident, your injuries should be covered; either by their insurance, the other parties insurance, or by your own Uninsured/Underinsured Motorist Coverage.


Medical Payments Coverage:
Medical Payments Coverage provides coverage for doctor, hospital, and surgical expenses incurred by you, covered family members, or your covered passengers riding in your covered auto when injured in and auto accident.  This coverage is available to you regardless of fault.  This coverage covers you and your resident family members even as passengers in a car driven by someone else.


Collision Damage Coverage:
Provides coverage for repairs to your insured vehicle up to the actual cash value, minus your policy deductible, if your auto is damaged in an accident.


Comprehensive (Other than collision) Coverage
Provides coverage for damage to your insured vehicle, up to the actual cash value, caused by falling objects, fire, theft, vandalism, flood, wind storm, hail, and many other non-collision losses.  A deductible will generally apply to this coverage.


Rental Reimbursement
Provides reimbursement, up to the daily limit you select, for a rental car if your car is in the shop due to a covered accident.