Auto Insurance Terms (M – P)
Medical payments coverage (MedPay): Coverage that pays for fair medical expenses or death benefits to anyone covered under your policy in the event of an auto accident, regardless of fault.
Motor vehicle report (MVR): A state record of licensing status, violations, suspensions and an other offences you’ve had over the last few years. The MVR is one of main factors used by your insurance company to arrive at your premium.
Named Insured: The first person in whose name the insurance policy is issued.
Occasional Driver: A person other than the primary driver of the insured vehicle is an occasional driver.
Optional Coverage: Optional coverage is a term that refers to any coverage on your policy that you are not required to carry by law. Examples are collision and comprehensive coverage. Other coverage that falls into this category includes rental car coverage, roadside assistance and accident forgiveness.
Personal Injury Protection (PIP) Coverage: A coverage in which the auto insurance company pays a limited amount towards the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians involved in the incident. PIP is the basic coverage implemented in all no-fault automobile insurance states.
Personal property liability: The part of a vehicle insurance policy that pays for damages you may cause to another’s car or property.
Policy: An agreement between you and your auto insurance company that details what the insurance company will cover under the mentioned conditions and provisions for the prescribed premium that you will pay for your coverage.
Policy Expiration Date: The date (usually specified along with the time as midnight) on which your current insurance policy ends. Policy expiration date is clearly mentioned in the policy documents, Declarations Page (Dec Page), insurance identification card or cancellation notices.
Policy Term: The length of time your policy is active and in force is your policy term.
Premium: The periodic amount you pay for your insurance coverage including all mandatory and optional coverages. Premium can be paid monthly, quarterly or annually.
Primary Residence:A primary residence is the place where you live for the most of your policy term.
Primary Use: Primary use is how you mainly use your vehicle. Primary use options include to/from work, business, pleasure, farm use etc.
Principal Driver: The person who drives the car most of the time is the principal driver (See Occasional driver)
Property Damage Liability Coverage (PD): Same as personal property liability mentioned above.