There is a term that confuses many when it is used in insurance and this is “endorsement”. Endorsements are the changes to the original insurance contract made. Such as a different deductible or adding a car or driver to the package.
Extraordinary Medical coverage is sometimes included in personal injury protection and this is the coverage that protects the insurer if they suffer accident-related injuries. To go a little further in the same direction, income loss coverage is also a part of personal injury protection sometimes and this takes care of you if you are unable to work due to accident-related injuries.
You will notice that the word indemnity is used a lot in car insurance policies and you may have always wondered what it means. Indemnity refers to a predetermined sum paid for a loss covered by insurance.
Personal injury protection (PIP) is the component in car insurance that covers the treatment of injuries to the driver and passengers of the policyholder’s car. Major PIP coverage can include both medical payments and lost wages of those injured in an accident.
Property damage liability as the name suggests pays for the damage that the holder of the car insurance policy causes to someone else’s property.