Insurance Basics

Coverage Definitions for Auto Insurance

Medical Payments

This pays you and your injured passengers for all reasonable medical hospital or funeral expenses which result from an automobile accident regardless of who is at fault. . You, and relatives living with you, are also covered as pedestrians if hit by an auto.

Uninsured/Underinsured Motorist

UM/UIM pays if you are injured by a driver who does not have insurance or a driver who does not have enough insurance.

You have a legal right to purchase both Uninsured And Underinsured Motorist Coverage with your proposed automobile liability policy. These coverages protect you, your family and your passengers. Liability coverage does not, in most cases.

Uninsured motorist insurance provides protection for bodily injuries caused by negligent motorist who has no insurance.

Underinsured motorist coverage provides protection if the negligent motorist does not have enough liability insurance to pay for the injuries caused. AAA's policies automatically provide Uninsured / Underinsured (UM/UIM) coverage in the same amount as the policy's Bodily Injury Liability Limit.

Personal Umbrella Policy

Personal Umbrella Liability coverage provides you with an additional layer of liability insurance above and beyond the liability coverage in your Auto, Boat, Homeowners and other personal insurance policies. It provides special coverages not found in most standard policies. Here are two advantages of having a an umbrella policy:

1) Better protection. Provides you with extra protection in the event you injure someone or destroy someone's property with your car or boat or someone is injured in your home.

2) Worldwide Coverage. An umbrella policy follows you around the globe. Whether your rental car injures someone in Europe or a boat you've rented injures someone off the coast of Greece, your umbrella policy protects you.