What do PIP, UM, subrogation and the other no-fault terms mean?
A glossary for no-fault auto insurance
These are general industry definitions, written to help you read your own documents. They are not statements of what any state requires, and your policy's own definitions section controls over any glossary — including this one. Where a term's operation depends on statute, the entry says so instead of guessing.
Coverage terms
Personal injury protection (PIP). First-party injury coverage: your insurer pays defined medical and related expenses for covered persons under your own policy, without the payment waiting on a determination of responsibility. What expenses qualify, for whom, and under what conditions is defined by the policy and by statute.
Medical payments (med-pay). A separate first-party coverage for medical expenses of covered occupants. Distinct from PIP and from liability coverage.
Bodily injury liability. Third-party coverage for injuries to others that you are legally responsible for causing.
Property damage liability. Third-party coverage for damage you cause to property belonging to someone else.
Uninsured / underinsured motorist (UM/UIM). First-party coverage for your injuries when the responsible driver has no liability coverage or not enough. Often written as stacked or non-stacked, which describes how limits apply across multiple vehicles on a policy.
Collision. First-party coverage for damage to your own vehicle from impact or overturn.
Comprehensive. First-party coverage for your vehicle from causes other than collision, as named in the policy.
Structural terms
First-party claim. A claim against your own policy, under your own contract.
Third-party claim. A claim against someone else's liability policy. See no-fault versus at-fault claims.
Limit. The maximum the policy will pay for a covered loss. Split limits show per-person and per-accident figures; a combined single limit shows one figure for the accident.
Deductible. The portion of a covered loss you bear before coverage responds.
Endorsement. A form that modifies the base policy — adding, removing, or redefining coverage. Listed by form number on the declarations page.
Exclusion. Policy language removing something from coverage. Exclusions are where most coverage disputes live.
Declarations page. The summary of your specific coverages, limits, vehicles and endorsements.
Claims-process terms
Adjuster. The person handling a claim for an insurer. An adjuster on a third-party claim works for that insurer, not for you.
Proof of loss. The documentation an insurer requires to evaluate a claim, as specified in the policy.
Subrogation. An insurer's right, after paying you, to pursue recovery from whoever was responsible.
Coordination of benefits. Rules determining which coverage pays first when more than one could apply.
Reservation of rights. Notice that an insurer is handling a matter while disputing whether coverage applies.
Comparative fault. The apportioning of responsibility among parties; its effect on recovery is set by state law.
Release. A signed agreement ending a claim. Its scope is a legal question, not a clerical one.
Terms that mean something else elsewhere
No-fault (family law). Grounds for divorce that do not require proving misconduct — unrelated to auto insurance. See why "no-fault" comes up in divorce.
Fault (electrical). An unintended current path in an electrical system. See what "fault" means in electrical and legal use.
Using this list
For any term that affects a decision — what to carry, what to claim, what to sign — the sources that count are your policy text, the current Florida Statutes, the state insurance regulator, and a licensed agent or attorney. A glossary tells you what a word means. It does not tell you what to do.