Sometimes words used by insurance professionals can be a little overwhelming and make you think ‘what’s that mean?’ But, speaking to your insurance representative doesn’t have to be confusing. Here is a quick list of common spoken words and a simple explanation of what they mean so you can be knowledgeable on the subject.


A deductible is the amount of money you will pay out of pocket for any accident or loss. Usually the higher the deductible, the lower the premium.


The total amount of money paid to your insurance company for coverage.

Bodily Injury Liability Coverage.

If you are found legally liable for an auto accident, bodily injury liability is what protects you. It pays for the injuries/death in the accident other than the driver insured. The coverage also pays if you are sued.

Property Damage Liability Coverage.

If you (the insured person) is responsible for an accident, this coverage pays for the damage to others’ property as a result of the accident.

Personal Injury Protection.

This coverage is when the insurance company pays for the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by insured vehicle.  Personal Injury Protection is implemented by Michigan, a no-fault automobile insurance state.

Comprehensive Coverage.

This coverage protects your vehicle if it is damaged in an incident other than an auto accident. Damages include fire, theft, windstorm, flood and vandalism.

Declarations Page.

Your auto insurance summary page. Includes the types, limit and cost for each coverage and what specific vehicles are covered by the policy.