Question: Liable

Answer: Responsible for damages caused.

Question: Negligent

Answer: At fault for damages caused.

Question: Automobile Insurance

Answer: A contract between a driver and an insurance company, where the driver agrees to pay a fee (called the premium) and the company agrees to cover certain accident-related costs when the driver makes a claim (request for payment).

Question: Premium

Answer: The amount paid for an insurance policy.

Question: Claim

Answer: A request for payment from an insurance company by a policy holder.

Question: Liability Insurance

Answer: A type of insurance that covers a person from damages; most states set minimum liability requirements.

Question: Bodily Injury Liability (BI)

Answer: Covers personal injury if a driver is at fault in an accident.

Question: Property Damage Liability (PD)

Answer: Insurance coverage that pays for damage a driver causes to another person’s property.

Question: Uninsured/Underinsured Motorist Protection (UMP)

Answer: Coverage that pays for injuries to a driver or passengers caused by a driver who has no insurance or does not have enough insurance to cover the medical losses.

Question: Personal Injury Protection (PIP)

Answer: Insurance coverage that pays for damage a driver causes to another person’s property.