CISR Personal Auto key terms

A standardized insurance contract that covers private passenger autos, pickups, and vans used mainly for personal purposes. It combines liability, medical, uninsured motorist, and physical damage coverages, each subject to its own limits and exclusions.

The opening section of a policy that identifies the insured, lists covered autos and drivers, states policy periods, and shows the limits and deductibles purchased. Coverage disputes often turn on what appears here rather than in the body of the form.

The section paying damages an insured becomes legally obligated to pay because of bodily injury or property damage arising out of ownership or use of a covered auto. It also funds defense costs, which are paid in addition to the stated limit.

Pays reasonable medical and funeral expenses for the insured and passengers injured in a covered auto accident, regardless of who caused the accident. Benefits are subject to a per-person limit and are paid without a deductible.

Pays damages the insured is legally entitled to recover from an at-fault driver who has no liability insurance, or from a hit-and-run driver. It typically covers bodily injury and, where state law or endorsement allows, property damage.

The physical damage section that pays for direct and accidental loss to a covered auto, either through collision or through other than collision causes. Payment is limited to actual cash value or repair cost, less any deductible.

Amounts paid under the liability coverage in addition to the limit of liability, such as defense costs, bail bonds up to a stated amount, and post-judgment interest. These payments do not reduce the liability limit available for damages.

The insurer's obligation to provide legal counsel and pay defense costs when a claim or suit seeking covered damages is brought against an insured. The right to settle is the insurer's, and defense ends when the liability limit is exhausted.

A liability limit structure written as three numbers, such as 100/300/50, meaning a per-person bodily injury maximum, a per-accident bodily injury maximum, and a per-accident property damage maximum. Each number applies separately.

A liability limit expressed as one total amount that applies to all bodily injury and property damage arising from a single accident, without separate per-person caps. It offers broader protection for severe single-victim losses.

Any vehicle that qualifies for coverage under the policy, typically the autos listed on the declarations plus newly acquired autos and temporary substitute autos. A vehicle outside this definition generally receives only the limited coverage the policy grants.

A vehicle acquired during the policy period that automatically receives coverage, generally for a limited number of days, if the insured reports it within the required time. The breadth of coverage depends on whether it replaces or adds to the existing fleet.

A vehicle used while a covered auto is out of service because of breakdown, repair, servicing, loss, or destruction. It is treated as a covered auto, but coverage ends when the original vehicle is returned to use.

A private passenger auto, pickup, or van the insured does not own but uses with permission, such as a borrowed car or an employer-provided vehicle. Liability coverage for such autos is usually excess over any other collectible insurance.

A judicial approach holding an insurer to the coverage a typical policyholder would reasonably anticipate from the policy language, even where a technical reading favors the insurer. Courts apply it mainly to ambiguous or hidden limitations.

A policy provision barring coverage for bodily injury or property damage expected or intended by the insured. It prevents an insured from using insurance to fund deliberate harm.

A limitation denying liability coverage when a covered auto is used for certain commercial purposes, such as carrying goods or passengers for a fee. Deliveries, rideshare driving, and livery service commonly trigger it.

A provision stating that the policy does not pay punitive or exemplary damages assessed against an insured. Some states prohibit insuring such awards, and the exclusion reflects that public policy.

A no-fault coverage required in some states that pays medical expenses, lost wages, and essential services for the insured and passengers after an auto accident, regardless of fault. It often replaces or supplements medical payments coverage.

A state insurance framework in which each driver's own insurer pays certain economic losses after an accident, restricting the right to sue for pain and suffering. It is designed to speed benefit payments and reduce litigation.

The standard in many no-fault states that an injured person must meet before filing a lawsuit for non-economic damages. Typical thresholds include death, disfigurement, fracture, or permanent loss of a body function.

A PIP benefit that reimburses a portion of the income an injured person loses while recovering from an auto accident, usually subject to a weekly maximum and a percentage of gross wages. Proof of lost income is generally required.

A PIP benefit that pays for ordinary household tasks the injured person can no longer perform, such as cleaning, cooking, or childcare. It is usually subject to a daily or per-accident maximum.

A modest benefit within medical payments or PIP coverage that reimburses burial and funeral costs when an accident causes death. It is paid within the stated per-person limit and does not require proof of fault.

A passenger riding in a covered auto who is not an insured under the policy. Medical payments coverage typically extends to such passengers, while liability coverage may still respond to claims they bring against the driver.

Protection that stands in for the liability insurance an at-fault driver should have carried but did not. It pays compensatory damages for bodily injury, and sometimes property damage, up to the stated limit.

Coverage that responds when an at-fault driver has liability insurance but its limit is too low to pay the insured's damages. It typically pays the difference between the insured's damages and the tortfeasor's limit, up to the UIM limit.

A motorist who causes injury or damage and leaves the scene without identifying themselves. Uninsured motorists coverage generally treats such a driver as uninsured, provided the accident is reported promptly to police.

The practice of adding together the uninsured motorist limits of multiple policies or multiple covered vehicles to increase the total available for a single accident. Whether stacking is allowed depends on state law and policy language.

A claim in which the insured alleges an unidentified vehicle forced them off the road without any contact. Many policies require physical contact with the hit-and-run vehicle, so such claims are often disputed or denied.

Physical damage coverage for loss to a covered auto caused by striking another object or vehicle, or by overturning. It applies regardless of fault and is subject to a deductible chosen by the insured.

Physical damage coverage for losses such as fire, theft, vandalism, hail, flood, and animal strikes, often called comprehensive coverage. It carries its own deductible and does not require fault by any party.

The settlement basis equal to replacement cost minus depreciation, reflecting what the vehicle was worth immediately before the loss. Most personal auto policies pay ACV rather than the cost of a new vehicle.

The amount needed to buy a comparable new item without deducting for depreciation. Personal auto policies rarely use it for vehicles, though some endorsements or new-car replacement provisions may apply it.

The amount the insured must absorb before the insurer pays a physical damage claim. Choosing a higher deductible lowers premium but increases the insured's out-of-pocket cost at the time of loss.

A vehicle damage outcome in which repair cost exceeds the vehicle's value or a state-mandated percentage of it. The insurer then settles at actual cash value, and the salvage may be retained or sold.

A demand for the reduction in a vehicle's market worth after it has been damaged and repaired, even when repairs are done well. Recovery depends on state law and the policy's loss settlement terms.

An optional benefit that pays a daily amount, up to a stated maximum, for a rental vehicle while a covered auto is being repaired after a covered loss. It usually requires physical damage coverage and applies only to the stated waiting period.

The value of transportation the insured goes without while a damaged vehicle is being repaired. Liability settlements to third parties may include it, and rental reimbursement coverage addresses it for the insured.

A broader benefit than rental reimbursement that pays for temporary transportation costs, including taxis and rideshare, while a covered auto is out of service. It is subject to a daily and total maximum.

A private passenger auto the insured rents from a rental company for temporary use. Liability coverage generally extends to it, while physical damage protection depends on the policy's terms and any rental car endorsement.

An optional product sold by rental companies that waives the renter's responsibility for damage or theft of the rental vehicle, usually for a daily fee. It is not insurance and may duplicate coverage the renter already owns.

A policy amendment that extends physical damage coverage to vehicles the insured rents, often on a primary basis and sometimes worldwide. It can reduce or eliminate the need to buy the rental company's damage waiver.

Any person or organization entitled to coverage under the policy, including the named insured, resident family members, and persons using a covered auto with permission. The exact scope varies by coverage part.

The person or persons shown first on the declarations page as the policyholder. The named insured holds the contractual rights to cancel, change coverage, and receive notices, and often receives broader coverage than other insureds.