No auto insurance resources would live on consummate without a comprehensive glossary of auto insurance terms. We’ve compiled a listing of terms together with their definitions to ameliorate assist y’all navigate the sometimes confusing Earth of insurance
Accident – This is an unexpected abrupt lawsuit that causes holding impairment to an automobile or bodily injury to a person. The lawsuit may live on an at-fault or not-at mistake together with it may live on written report or unreported. An accident involving 2 vehicles may live on termed a collision.
Accident written report degree – This is the written report filed past police, ofttimes called the constabulary report, containing the of import data regarding the vehicle collision. This written report volition include the names of all individuals involved, vehicles involved, holding damaged together with citations that were issued.
Adjuster – This is the soul who volition evaluate the actual loss reported on the policy later on an accident or other incident. They volition brand the decision on how much volition live on paid on the auto insurance policy past the Insurer.
Agent – This is a licensed together with trained private who is authorized to sell together with to service insurance policies for the auto insurance company.
At Fault – This is the amount that you, the policy holder, contributed or caused the auto collision. This determines which insurance means pays which part of the losses.
Auto Insurance Score – This is a score like to credit score that evaluates the data inwards your consumer credit report. These scores are used when determining pricing for your auto insurance policy. Negative marks on your credit written report tin increment your auto insurance premiums. The purpose of this data to create upward one’s mind policy pricing does vary from country to state.
Automobile Insurance – This is a type of insurance policy that covers together with protect against losses involving automobiles. Auto Insurance policies include a broad arrive at of coverage’s depending on the policy holders needs. Liability for holding impairment together with bodily injury, uninsured motorist, medical payments, comprehensive, together with collision are some of the mutual coverage’s offered nether an auto insurance policy.
Binder – This is a temporary short-term policy understanding set inwards home spell a formal permanent policy is set into home or delivered.
Bodily Injury Liability – This is the department of an insurance policy that covers the cost to anyone y’all may injure. It tin include lost payoff together with medical expenses.
Broker – This is a licensed private who on your behalf sells together with services diverse insurance policies.
Claim – This is a formal find made to your insurance fellowship that a loss has occurred which may live on covered nether the terms of the auto insurance policy.
Claims Adjuster – This soul employed past the insurance means volition investigate together with settle all claims together with losses. A example for the insurance means to verify together with ensure all parties involved alongside the loss, acquire compensated fairly together with correctly.
Collision – The part of the insurance policy that covers impairment to your vehicle from hitting some other object. Objects tin include but are non express to; some other vehicle, a building, curbs, guard rail, tree, telephone pole or fence. A deductible volition apply. Your insurance fellowship volition become later on the other parties insurance policy for these cost should they live on at fault.
Commission – This is the part of the auto insurance policy that is paid to the insurance agent for selling together with servicing the policy on behalf of the company.
Comprehensive – This is a part of the insurance policy that covers loss caused past anything other than a collision or running into some other object. A deductible volition apply. This includes but is non express to vandalism, tempest damage, fire, theft, etc.
Covered loss – This is the impairment to yourself, other people or holding or your vehicle that is covered nether the auto insurance policy.
Declarations Page – This is the office of the insurance policy that includes the entire legal advert of your insurance company, your total legal name, consummate auto data including vehicle identification numbers or VIN, policy information, policy number, deductible amounts. This page is normally the front end page of the insurance policy.
Deductible Amount – This is the part of the auto insurance policy that is the amount the policy holder must pay upward front end earlier the Insurance Company contributes together with is required to pay whatever benefits. This amount tin live on inside a broad arrive at inwards cost together with varies from roughly $100 – $1000. The larger amount y’all pay inwards a deductible the lower your normal monthly/yearly policy volition cost. This is the part of the auto insurance policy that would live on applicable exclusively to comprehensive or collision coverage.
Discount – This is a reduction inwards the overall cost of your insurance policy. Deductions tin live on given for a multifariousness of unlike reasons including a expert driving record, grades, age, marital status, specific features together with security equipment on the automobile.
Emergency Road Service – This is the office of an auto insurance policy that covers the cost of emergency services such equally apartment tires, keys locked inwards the auto together with towing services.
Endorsement – This is whatever written alter that is made to the auto insurance policy that is adding or removing coverage on the policy.
Exclusion – This is the part of the auto Insurance policy that includes whatever provision including people, places or things that are non covered nether the insurance policy.
First Party – This is the policyholder, the insured inwards an insurance policy.
Gap Insurance – This is a type of auto insurance provided to people who lease or ain a vehicle that is worth less than the amount of the loan. Gap auto Insurance volition encompass the amount betwixt the actual cash value of the vehicle together with the amount left on loan should the aid live on stolen or destroyed.
High-Risk Driver – If y’all receive got a multifariousness of negative marks on your insurance tape including driving nether the Influences, several traffic violations, etc. y’all may live on labeled equally a adventure to the insurance company. This volition increment your insurance policy or may brand y’all ineligible for coverage.
Insured – The policyholder (s) who are covered past the policy benefits inwards example of a loss or accident.
Insurer – Is the Auto Insurance fellowship who promises to pay the policy holder inwards example of loss or accident.
Liability insurance – This office of an auto insurance policy which legally covers the impairment together with injuries y’all crusade to other drivers together with their vehicles when y’all are at mistake inwards an accident. If y’all are sued together with taken to court, liability coverage volition apply to your legal costs that y’all incur. Most states volition require drivers to behave some variation of liability coverage Insurance together with this amount volition vary country past state.
Limits – This is the part of the auto insurance policy that explains together with lists the monetary limits the insurance fellowship volition pay out. In the province of affairs y’all attain these limits the policy holder volition live on responsible for all other expenses.
Medical Payments Coverage – This is the part of an auto insurance policy that pays for medical expenses together with lost payoff to y’all together with whatever passengers inwards your vehicle later on an accident. It is also known equally personal injury protection or PIP.
Motor Vehicle Report – The motor vehicle written report or MVR is a tape issued past the country inwards which the policy holder resides inwards that volition listing the licensing status, whatever traffic violations, diverse suspensions and./ or refractions on your record. This is i of the tools used inwards determining the premium prices offered past the insurance agency. This is also used to create upward one’s mind the probability of y’all having a claim during your policy period.
No-Fault Insurance – If y’all reside inside a country alongside no-fault insurance laws together with regulations, your auto insurance policy pays for your injuries no thing who caused the accident. No-fault insurance states include; Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah together with Washington, DC..
Non-Renewal – This is the termination of an auto insurance policy on the given expiration date. All coverage volition cease equally of this appointment together with insurer volition live on released of promised coverage.
Personal Property Liability – This is the part of the auto insurance policy that covers whatever impairment or loss y’all crusade to some other person’s personal property.
Personal Injury Protection or PIP – This part of an auto insurance policy pays for whatever lost payoff or medical expenses to y’all together with whatever passengers inwards your vehicle next an accident. PIP is also known equally medical payments coverage.
Premium – This is the amount charged to y’all monthly, yearly or whatever other duration agreed upon past insurance fellowship together with policy holder together with paid direct to the auto insurance company. A premium is based on the type together with amount of coverage y’all conduct for your vehicle(s) together with yourself. Other factors that volition impact your insurance premium prices include your age, marital status, you’re driving together with credit report, the type of auto y’all drive together with whether y’all alive inwards an urban or rural area. Premiums vary past insurance fellowship together with the location y’all live.
Quotation – This is the amount or estimated amount the insurance volition cost based on the data provided to the agent, broker or auto insurance company.
Rescission.- This is the cancellation of the insurance policy dated dorsum to its effective date. This would resultant inwards the total premium that was charged beingness returned.
Rental Reimbursement – This is the part of the auto insurance policy that covers the cost of an automobile rental of like size should the covered vehicle live on inwards repair from a reported incident.
Replacement Cost – This is the amount of coin it would cost to supersede a lost or damaged particular at it is really novel replacement value. This monetary amount would live on based on a novel identical particular inwards the electric stream local market.
Salvage – This is the auto insurance policy holders holding that is turned over tot eh insurance means inwards a loss last settlement. Insurance companies volition sell the salve holding inwards hopes to recoup some of its monetary loss due to the loss together with settlement.
Second Party – this is the actual insurance fellowship inwards the auto insurance policy.
Surcharge – This is the amount added to your auto insurance policy premium later on a traffic violation or an accident inwards which y’all were institute to live on at fault.
Third Party – This is some other soul other than the policy holder together with auto insurance fellowship who has faced a loss together with may live on able to collect together with live on compensated on behalf of the policy holder’s negligence.
Total Loss – This is consummate devastation to the insured holding of a policy holder. It has been determined that it would live on a cracking amount of coin to repair the particular rather than supersede the insured slice of holding to its country prior to the loss.
Towing Coverage – This is the part of the auto insurance policy that covers a specified amount for towing services together with related task costs.
Under insured Driver – This is the part of an auto insurance policy which covers injuries to y’all caused past a driver without plenty insurance to pay for the medical expenses y’all receive got incurred from the accident. This is part of the policy tin vary country past country equally some states include impairment to the auto inwards this section.
Uninsured Driver or Motorist – This is the part of the auto insurance policy which covers injuries to y’all caused past a driver who was without liability insurance at the fourth dimension of the accident. Uninsured driver or motorist coverage comes inwards 2 unlike sections; uninsured motorist bodily injury together with uninsured motorist holding damage. Uninsured motorist bodily injury coverage covers the injuries to y’all or whatever rider inwards your vehicle when in that location is an accident alongside an uninsured driver. Uninsured motorist holding impairment coverage covers the cost for the holding impairment to your vehicle when in that location is an accident alongside an identified uninsured driver. Uninsured driver or motorist coverage must live on offered when y’all buy the required liability coverage for your vehicle. You must sign a declination waiver if y’all reject Uninsured driver or motorist coverage. The bulk of states require drivers to behave some degree of uninsured motorist coverage. Some states include damages to your auto inwards this coverage.