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| • | Passive Arming - The ability of some security systems to arm without requiring any direct action from the operator of the vehicle. |
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| • | Passive Device - A passive device disables the vehicle by making the fuel, ignition, or starting system inoperative. A disabling device is classified as passive if a separate manual step is not required to engage the device. |
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| • | PD - Property Damage Coverage - This coverage pays for property damage incurred by others that was caused by you (i.e. you are at fault and therefore liable). Property Damage can be referred to as third-party coverage, since it will not pay for your own property. For example, it covers damage to another car, a garage door, or a lamp post. Property Damage serves to protect your assets. If you have significant assets to protect (i.e. home, cars, savings), we strongly recommend purchasing high limits (i.e. 50,000 or more). If expenses incurred by the third party are greater than your purchased limit, your assets may be sacrificed. In general, the higher the limit selected, the more expensive the coverage. Property Damage is mandatory, and therefore a minimum limit must be purchased. |
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| • | Per Occurrence Limit - This refers to the cap amount an insurance company will pay for all claims arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by all parties. When Bodily Injury coverage is purchased in split limits, the second limit is the "per occurrence" limit: e.g. $100,000(per person)/$300,000(per occurrence) |
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| • | Per Person Limit - This refers to the cap amount an insurance company will pay for any one person's injuries arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by each person. When Bodily Injury is purchased in split limits, the first limit is the "per person" limit: e.g. $100,000(per person)/$300,000(per occurrence) |
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| • | Personal Auto Policy - The most common auto insurance policy sold today. Often referred to as "PAP," this policy is written in simple wording and provides coverage for liability, medical payments, uninsured/underinsured motorist coverage, and physical damage protection. |
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| • | Personal Injury Protection - The name usually given to no-fault benefits in states that have enacted mandatory or optional no-fault auto insurance laws. Personal Injury Protection (PIP) usually includes benefits for medical expenses, loss of income from work, essential services, accidental death, funeral expenses, and survivor benefits. |
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| • | Physical Damage - Damage to your covered vehicle from perils including (but not limited to) collision or upset with another vehicle object, fire, vandalism and theft. |
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| • | Policy - The written documents of a contract for insurance between the insurance company and the insured. Such documents include forms, endorsements, riders and attachments. |
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| • | Policy Period - The period of time in which a policy is in effect. For example, six months or one year, are standard policy periods. |
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| • | Policyholder - One who maintains ownership in an insurance policy. This may refer to the policy owner or those covered under the policy. See also Named Insured. |
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| • | Preferred Risk - Any risk considered to be better than the standard risk on which the premium rate was calculated. |
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| • | Premium - The price of insurance an insured person pays for a specified risk for a specified period of time. |
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| • | Private Passenger Automobile - A four-wheeled motor vehicle that is subject to motor vehicle registration and used for private personal use. |
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| • | Pro Rata Cancellation - Termination of an insurance contract before the policy expiration date on which the premium returned to the insured person is adjusted in proportion to the amount of time the policy was in effect. |
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| • | Property Damage Liability Insurance - Protection against liability for damage to another's tangible property, including loss of use. Although this coverage is different than liability for bodily injury to another person, Bodily Injury and Property Damage Liability protection are generally written together. |
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