Common Insurance Terms

Actual Cash Value – The amount to replace an item minus depreciation

Replacement Cost – The dollar value it costs to replace an item at current prices (no depreciation)

No Fault – Your own insurance company pays for medical bills even if it is the other drivers fault.

Liability Coverage – Pays claims against you + legal defense costs

PIP Coverage – Covers medical expenses for you or any member of your household if injured during an automobile accident.

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