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Your auto insurance policy will provide protection under a variety of circumstances. The following example may help you understand which auto insurance coverages are designed for a given event.

John is driving his new car on Main Street, more concerned with the vehicle's gadgets than watching the road. Unfortunately, he collides with a car in front of him stopped at an intersection. The car is occupied by Michelle and her two sons. The collision deploys John's airbag. He incurs a broken nose and his front fender is severely damaged. Michelle suffers a strained neck, her car is damaged and both boys bruise their knees. How will John's auto insurance policy come into play and will it protect his financial well-being?

Because John is clearly at-fault, the bodily injuries sustained by Michelle and her sons are covered by John's bodily injury coverage. Michelle's damaged car will be repaired under John's property damage coverage. Medical expenses for John's broken nose and his loss of income if he misses time from work will be taken care of by his personal injury protection coverage. John's new car will be repaired through John's collision coverage, subject to the selected deductible. If the car is towed to a garage, the costs will be covered through his towing and labor coverage. If the car is in the shop for an extended period of time, John will need to rent a car. The rental reimbursement coverage he selected will help defray these expenses. All of these coverages will be paid subject to the selected limits and/or deductibles of the insurance policy. If expenses incurred are greater than John's purchased limit, John's assets may be sacrificed. Although this example is extreme, it should help you to better understand the importance of auto insurance.

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Active Anti-theft Device

An active device disables the vehicle by making the fuel, ignition, or starting system inoperative. A disabling device is classified as active if a separate manual step is required to engage the device. An example of an active step is the use of a remote control on the ignition key.

Alarm

An alarm is considered to be an audible sounding device, such as a motor vehicle's horn, bell, siren, or other sounding device, that can be heard at a distance of at least 300 feet for a minimum of 3 minutes.

Anti-hot Wiring Anti-theft Device

A circuit or method that prevents a motor vehicle from starting, including ignition interrupts, starter interrupts, or fuel interrupts.

Anti-theft Device

An anti-theft device is a manufacturer-installed or after-market device that triggers upon entry to the vehicle. It prevents operation of the fuel, ignition or starting systems. It must be permanently installed. Portable equipment does not qualify for this discount.

Anti-theft - Manual Alarm

The driver must set a manual alarm.

Anti-theft - Passive Alarm

A passive alarm sets automatically.

At-fault Accident

An at-fault accident is one in which you are legally held responsible for the accident.

Auto Shutoff And Reset Anti-theft Device

A system by which an alarm device sounds for not more than 4 minutes, shuts off, and immediately rearms itself.

Bodily Injury Coverage (BI)

This coverage pays for bodily injury incurred by others and caused by you (i.e. you are at fault and therefore liable). Bodily Injury can be referred to as a third-party coverage, since it will not pay for your own bodily injury. Some expenses resulting from bodily injury include ambulance service, emergency treatment, doctors' fees, physical rehabilitation, and loss of income or earning capacity as well as legal and court costs. Bodily Injury limits are in a 'split' form (i.e. 100,000/300,000). For example, split limits of 100,000/300,000 mean the company will pay as much as $100,000 to each injured person, but not more than a total of $300,000 per accident. Bodily Injury protects your assets. If you have significant assets to protect, such as home, cars and savings, we strongly recommend purchasing high limits (i.e. 100,000/300,000 or more). If expenses incurred by the third party are greater than your purchased limit, your assets may be sacrificed. In general, the higher the limit selected, the more expensive the coverage. Bodily Injury is mandatory, and therefore a minimum limit must be purchased.

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Collision Coverage

This coverage helps pay for repairs to a vehicle damaged by a collision with another vehicle or object. Examples of this include a collision with a tree, trash can or garage door. Collision may also provide coverage if a car rolls over even if another vehicle is not involved. To obtain this coverage, please choose a deductible, which represents the portion of damages you would pay before your insurance coverage would activate. If you do not wish this coverage, simply choose "No Coverage."

Comprehensive Coverage

This helps cover damage to a car resulting from incidents other than those governed by collision coverage. Examples of this may include damage or loss resulting from fire, theft, vandalism, falling objects or certain natural disasters or accidents resulting from a collision with an animal. To obtain this coverage, please choose a deductible, which represents the portion of damages you would pay before your insurance coverage would activate. If you do not wish this coverage, simply choose "No Coverage."

Deductible

A deductible represents the amount paid by you (in other words, your out-of-pocket expense) before the insurer will pay benefits. In general, the higher the deductible you select, the lower your premium cost.

Driver Fitness Discount

Operators who are 70 years old or older are classified as 'with Driving Fitness' if all such operators listed on the policy have provided, within the last year, certification from a licensed physician that the operator's vision, health and physical condition permit the safe operation of a motor vehicle.

Driver Training Discount

Valid in certain states, this discount is applied when insured submits proof of voluntary attendance and successful completion of a motor vehicle driver-training course approved by your state. The course must have been completed within your state's designated time frame from the date of application in order for the discount to be valid.

Drugs And Alcohol Awareness Training Discount

Available in Texas only, this discount is applied when insured submits proof of voluntary attendance and successful completion of a drug and alcohol driving awareness program that has been approved by the Texas Education Agency under the Texas Driver and Traffic Safety Education Act.

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Extended Transportation Expenses

See Rental Reimbursement

Extraordinary Medical Benefits, Pennsylvania

Provides coverage for medical and rehabilitative expenses that exceed $100,000 per person subject to a yearly limit of $50,000 per person and an aggregate maximum of $1,000,000. The $50,000 annual limit does not apply to expenses incurred within the first 18 months of an insured's eligibility.

First Party Benefits, Pennsylvania

Options within this coverage include:

Full Glass Coverage

In the event of a glass claim, the deductible is waived.

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Glass Sensor Anti-theft Device

An electronic device that activates the alarm device if it detects the sound of breaking glass or metal in contact with glass.

Good Student

Available in Georgia only, this discount is applied to an unmarried rated operator who is at least 16 years old and under 25 years old if the operator is a full-time high school, college, university, or vocational/technical school student and the operator is an 'honor student' as dictated by one of our criteria.

Group Discount

Applied when the named insured maintains membership in or association with an approved group that has established a relationship with Response Insurance.

Hood Restraint And Backup Battery Anti-theft Device

The hood restraint is a device preventing full access to under-hood components, including chain restraints that allow hood opening a maximum of four inches, a mechanical or electrical device that physically locks the hood down, or a mechanical or electrical device that prevents the factory-supplied hood mechanism from operating. The backup battery is an auxiliary power source that trips an alarm device if the main power source is disconnected or if wires to the alarm device are cut or disconnected.

Household Members

Household members are considered those who live in the same household with the named insured other than the spouse.

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Income Loss, Virginia

Pays toward the loss of income incurred by an injured person if the injured person had an income when the accident occurred. This loss must occur within one year after the date of the accident and be a result of disability caused by the accident.

Insured's Spouse

The insured's spouse usually is entitled to receive the same coverage as the named insured if he or she lives in the same household.

Limits

Limits, or limitations, are caps on the dollar amounts of coverage you are entitled to receive under the policy. Different types of coverages, such as bodily injury, property damage and medical payments, among others, have different limits set. Within the range of limits offered, the policyholder generally chooses the limits for each coverage type.

Major Violations

Examples of major violations are:

Medical Payments Coverage

This coverage pays for necessary medical and hospital expenses. You, household relatives, and other persons occupying your car are protected. Individuals covered under the policy may also be protected when injured as a pedestrian. This coverage may vary depending upon the state.

Motion Sensor Anti-theft Device

A mechanical device that activates the alarm device if the vehicle is jacked up or towed.

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Named Insured

The named insured is the individual who is primarily insured under the policy and generally receives the most extensive coverage under it.

No-fault Coverage

No-fault coverage pays for injuries to you and certian other eligible individuals regardless of who is at-fault.

Optional Basic Economic Loss (OBEL), New York

Optional Basic Economic Loss (OBEL) is an optional coverage that will pay certain expenses, up to $25,000, above the Personal Injury Protection limit of $50,000. Optional Basic Economic Loss is different from your other coverages in that you can select the kinds of benefits to be paid under OBEL. If you select OBEL, we will contact you when it appears likely that you may use up the Basic Personal Injury Protection coverage of your policy to find out how you wish to apply your OBEL coverage.

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Passive Device

A passive device disables the vehicle by making the fuel, ignition, or starting system inoperative. A disabling device is classified as passive if a separate manual step is not required to engage the device.

Personal Injury Protection Coverage (PIP)

This coverage pays for reasonable medical expenses, as well as a percentage of your lost earnings, if not specifically excluded, and is subject to the limit you select. You, household relatives, and other persons occupying your car are protected. Individuals covered under the policy may also be protected when injured as a pedestrian. Therefore, PIP is first-party coverage, since it will not pay benefits for those injured in another car (protection is provided through bodily injury coverage). This coverage is also referred to as "No-fault" coverage since benefits are awarded regardless of fault.

Personal Injury Protection Deductible, Florida / Delaware

The deductible represents the amount you will pay out-of-pocket in the event you have selected personal injury protection coverage and an incident occurs that falls under this category. In general, the higher the deductible you select, or the more operators and household members it is applied to, the less expensive the coverage.

Property Damage Coverage (PD)

This coverage pays for property damage incurred by others that was caused by you (i.e. you are at fault and therefore liable). Property Damage can be referred to as third-party coverage, since it will not pay for your own property. For example, it covers damage to another car, a garage door, or a lamp post. Property Damage serves to protect your assets. If you have significant assets to protect (i.e. home, cars, savings), we strongly recommend purchasing high limits (i.e. 50,000 or more). If expenses incurred by the third party are greater than your purchased limit, your assets may be sacrificed. In general, the higher the limit selected, the more expensive the coverage. Property Damage is mandatory, and therefore a minimum limit must be purchased.

Rental Reimbursement

This coverage pays toward the expenses to rent an auto if you have a loss (covered under your Comprehensive or Collision coverage) and your auto is disabled longer than 24 hours. Rental Reimbursement may also be referred to as Extended Transportation Expenses, dependent on the state, which provides the same coverage.

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Stacked Or Non-stacked Coverage, Florida

Stacked coverage means that the Uninsured Motorists limits for each vehicle insured by this policy can be added together. For example, if each vehicle has $10,000/$20,000 coverage and there are two vehicles, the coverage would actually be equivalent to $20,000/$40,000 limits.

Non-Stacked coverage means that the stated limit applies per accident regardless of the number of vehicles insured. For example, if a vehicle has $10,000/$20,000 non-stacked coverage on a single or multicar vehicle policy, that is the amount that would be covered if there is a loss.

Stacked Or Non-stacked Coverage, Pennsylvania

Stacked coverage means that the limits for each car owned and registered in the state of Pennsylvania can be added together. For example, if each vehicle has $10,000/$20,000 coverage and there are two vehicles, the coverage would actually be equivalent to $20,000/$40,000 limits. If you are currently purchasing a multi-vehicle policy or a single car policy but have another vehicle registered in Pennsylvania that is insured by another insurance company, you may purchase stacked coverage at an additional charge.

Non-stacked means that the stated limit applies per accident regardless of the number of vehicles insured. For example, if a vehicle has $10,000/$20,000 non-stacked coverage on a single or multi-car vehicle policy, that is the amount that would be covered if there is a loss. If you own a single vehicle registered in the state of Pennsylvania, you must elect non-stacked Underinsured or Uninsured Motorist Bodily Injury coverage or opt to have no coverage.

Supplementary Uninsured/Underinsured Motorists (SUM), New York

This coverage protects you, your household relatives, and any other persons occupying your auto, if you are injured by a driver with no liability insurance, or by an underinsured driver, or by a hit-and-run driver who is held legally responsible for your injuries. This pays for your damages after the other driver's coverage has been exhausted. SUM extends to incidents that occur anywhere in the United States.

If you prefer Uninsured Motorists Coverage, which is the minimum mandatory coverage you may choose and is typically referred to as Statutory Uninsured Motorists Coverage, please contact our call center. Uninsured Motorists Coverage protects you only for incidents that occur in New York and does not cover you for underinsured motorists.

Tort Types - Limited Or Full

Under the "Limited Tort" option, your right and the rights of your family members to seek financial compensation for injuries caused by other drivers are limited. Selection of the "Limited Tort" option will reduce your insurance premium.

Under the "Full Tort" option, you maintain an unrestricted right for you and the members of your household to seek financial compensation for injuries caused by other drivers.

Towing And Labor

If your auto is disabled, this coverage pays up to $50 for the towing or labor at the place of disablement subject to the selected limit.

Traffic Mitigation Discount

Available in Delaware only, this discount is applied if the rated driver participates in a Travelink Traffic Mitigation Act program (employer-sponsored ride sharing). Such a program must have been approved by the Department of Transportation.

Traffic/Moving Violations

Examples of violations are: