RV Advantage - Common Insurance Terminology

Common Terminology

Sometimes insurance terminology can become confusing, we're hoping this will help!

Bl/PD: Bodily Injury/Property Damage:
When a claim is made against you or someone driving your vehicle with your permission, your liability pays for bodily injury to others and damage to the property of others when you are liable. Coverage pays up to the policy limits.

UM/UIM: Uninsured Motorist/Underinsured Motorist:
Uninsured Motorists Coverage addresses the problem of trying to collect compensation for bodily injury caused by uninsured drivers. This includes hit-and-run drivers. Uninsured Motorists Coverage usually is offered in the same amount as your Bodily Injury (Bl) Liability Coverage. However, you may purchase Uninsured Motorists Coverage at less than your Bl limits, as long as the coverage meets your state’s financial responsibility limits.

The coverage pays for you, your spouse, resident relatives and guest passengers riding in your auto. Underinsured Motorists Coverage may provide additional compensation for the injuries.

Medical Payments Coverage or Personal Injury Protection:
Medical Payments Coverage pays for doctor and hospital bills resulting from injuries received in automobile accidents, or when bicyclists or pedestrians are struck by motor vehicles. Insured persons include you, your spouse, resident relatives and guest passengers riding in your auto. Reasonable funeral expenses are covered, within the limit of Medical Payments Coverage or the limit under Personal Injury Protection Coverage.

Personal injury protection (no-fault):
Your policy will provide no-fault insurance for residents of states where it is required. This means that you, your family and any passengers are covered under your policy regardless of who is responsible for the accident. This coverage includes medical, surgical, dental, hospital, work loss and certain other related expenses. This same coverage extends to you or your family member in an accident as a pedestrian.

Coverage for Damage to Your Vehicle:
This coverage pays for direct and accidental loss to your insured auto or to certain vehicles you are temporarily using. Coverage for Damage to Your Auto is divided into two categories - Collision and Comprehensive. Collision Coverage pays for damage to your auto when your car collides with another auto or object. This coverage will pay for repairs required because of the accident, less the deductible.

Comprehensive Coverage:
Pays for practically all loss or damage to your car caused by hazards other than collision or upset, less the deductible. Examples include loss from fire, theft, glass breakage, vandalism, riot, explosion, flood, falling objects, wind and others. Mechanical breakdown is not covered.

Replacement Cost Coverage:
Replacement means that in the event of a total loss, in the first five years, your unit is replaced with a brand new, current model year. After your unit is five years old you will receive the purchase price in the event of a total loss. This is purchase price coverage, or guaranteed purchase price. This means there is never any depreciation.

Diminishing Deductible:
Each claim-free year, the deductible goes down one-fourth. If you start out with $100 collision deductible and go two full years with no losses, and then hit a tree, the deductible that would come out of the insured’s pocket would be $50, not $100. Please note that it’s the amount of the deductible that diminishes not the premium that you pay for it.

Scheduled Medical and Life Benefits:
In the event you or your spouse loses his/her life in an accident with the motorhome, the company will pay for each person, or a total if both lose their lives. There are medical benefits for loss of leg, arm, eyesight, etc., for each person.

Emergency Expenses:
The company will pay for motel or the cost of getting you back home if you are out traveling and have a comprehensive or collision loss (like a fire, accident, theft, etc.) and cannot stay in the unit while it is being repaired.

Car Caddy / Trailer Coverage:
The company will pay up to $2,500 for any trailer, including a car caddy. This does not mean the tow bar. If you were pulling a boat, the trailer would be covered up to $2,500.

Tow and Labor:
This feature provides towing to the nearest qualified repair facility and necessary labor at the time and place of disablement.

Personal Liability Coverage:
While sitting in a camp ground, if some one comes over to visit, and they slip on the step of the unit or they run into an awning that is too low, or the dog bites someone, there is coverage for this up to the limit you choose. Insured has to be legally responsible and has to have been neglectful in keeping property in repair. This accident has to happen in, on, around, or under the unit.

Full Timers Coverage:
This is for people who live in the unit – and do not have a place of residence anywhere or who live in the unit for 150 Days or more. There are additional coverages available for the added exposure. Example Fire Department coverage, excess personal liability up to the amount of the bodily injury on the RV, extra medical payments

Personal Effects/contents:
Covers personal items in the covered vehicle with replacement cost coverage.