In some states, only the car’s owner(s) can give permission. In others, any licensed driver in the home can give permission. PERSONAL INJURY PROTECTION (PIP): Required in no-fault states, this helps cover your medical bills and income loss. POLICY: The contract between you and the insurance company that includes all your coverage details. POLICYHOLDER: The individual whom the insurance policy covers. (In other words, you. May also include your spouse.) PREMIUM: What you pay for your policy. May be paid once per year, every six months, or every month. The math to figure out the cost is: rate x number of exposure units. (See Chapter 1 for example.) PROPERTY DAMAGE COVERAGE: Part of liability coverage that pays for damage you cause to other people’s property. PURE COMPARATIVE NEGLIGENCE: A type of negligence law that determines how much money you get based on how much at fault you are for the accident. RATE: What it costs the insurance company per exposure. (Often used as a synonym for “premium,” but technically not the same thing.)
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