If you have your own car, you probably already know a little about auto insurance. You may have heard the words deductible or premium. But do you truly understand the technical terms used by your auto insurance company? How would you know the different parts of an auto insurance policy and its coverage if you can’t identify its meaning? How would you know what your entitlements are if you are not proficient in the terms used in your policy? It is time to go back to the basics.

Bodily Injury Liability - this covers medical expenses for injuries or death the policyholder causes to a third party. This coverage is commonly referred to as "BI" and is usually written together with Property Damage Liability.

Claim - the policyholder's request for the reimbursement of a loss covered by their insurance policy.

Collision: this coverage pays for the damage and loss of use of the policyholder's vehicle resulting from an accident caused by a collision with another vehicle or object, such as signages.

Comprehensive - for damage to the policyholder's car that doesn't involve hitting another car. Covers damage resulting from fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion.

Deductible - the amount predetermined by the policyholder that must be paid out-of-his/her pocket before the insurance company will pay toward a loss.

Full Coverage - this indicates that you have all the minimum coverage but it does not necessarily mean you will always be fully covered.

Gap Insurance – this is an optional coverage that will pay the difference between the value of the vehicle at the time of loss and the amount remaining on the loan for the vehicle.

Indemnity- predetermined sum paid for a covered loss.

Insured - persons covered by the auto insurance policy. Examples of an insured are the policyholder (also called the "named insured"), resident relative and someone using the vehicle with permission.

Medical Payments -this coverage pays for medical and funeral expenses resulting from an accident regardless of fault. Medical Payment coverage also cover injuries to passengers in your car or someone else's car that you are driving with permission, as well as injuries sustained in a car accident by you or a family member.

Other-than-collision - commonly known as "comprehensive," this coverage pays for the damage and loss of use of the policyholder's vehicle resulting from an accident caused by an event other than a collision or overturn. Such events may include theft, vandalism and fire.

Physical Damage - collective term commonly used to describe types of coverage that apply to damage to your vehicle. These types of coverage include collision and other-than-collision (a.k.a. "comprehensive")

Property Damage Liability - damage to someone's physical property, including loss of use, for which the policyholder is legally liable. This coverage is commonly referred to as "PD" and is usually written together with Bodily Injury Liability.

Rental Reimbursement - an optional coverage that will reimburse the policyholder for the cost of a rental car if required, due to a covered loss. This coverage may pay part or all the cost of a rental car. This type of coverage will also pay for a rental car if your car is damaged due to a car accident.

Uninsured Motorist - this coverage pays for bodily injury sustained by a covered person resulting from an accident with an at-fault driver who is uninsured or flees the scene of the accident.

Underinsured Motorist - similar to Uninsured Motorist, this coverage pays for bodily injury sustained by a covered person resulting from an accident with an at-fault driver who does not have enough insurance to pay for the injuries.

Now that you have the basic terms in auto insurance, you will be more confident in claiming your right as a driver and as an auto insurance policyholder.