Insurance lingo can often be confusing, here is a helpful list of common phrases and definitions used throughout the industry.
The state minimum requirements for a vehicle to be legally on public roads. Liability only will cover the other party during an accident. The goal of the insurance company is to put everything back to how it was before.
Full Coverage Insurance
Full Coverage includes liability insurance, plus some form of comprehensive & collision coverages (deductible amounts can vary, but $500 is common). Other optional coverages may include Towing, Rental, UM, UIM, etc.
Pays for damage to your car by any peril other than collision (ex: fire, wind, hail, theft, vandalism, glass, etc).
Pays for damage to your car by impact with another object (a crash) or by upset (rollover).
If you have a deductible of $500, in the event of a claim you would be responsible for paying the deductible amount & the insurance company would cover the difference.
SR22 allows the state of Utah track the financial responsibility of an individual. The required time frame can vary, sometimes as little as 6 months, but usually 3 years. It is best to check with the court that issued it. SR is sometimes believed to be an acronym for “State Report”, “Safety Responsibility” or “State Reference” – but the truth is it doesn’t stand for anything. It’s simply the name of the form used by insurance companies to provide proof that auto liability insurance is in effect for particular individuals.
Uninsured Motorist (UM)
Optional coverage that pays for the medical bills of the 1st person in the insureds car when the other (at fault) party has no insurance
Underinsured Motorist (UIM)
Optional coverage that pays for the medical bills of the people in the insureds car when the other party has insurance, but not enough insurance to pay for the medical bills of the people in you car.