Car Insurance Terms and Glossary

No automobile insurance resource would be complete without a comprehensive glossary of automobile insurance terms. We've compiled an inventory of terms and their definitions to raised assist you navigate the sometimes confusing world of insurance

Accident - this is often an unexpected sudden event that causes property damage to an automobile or bodily injury to an individual . 

The event could also be an at-fault or not-at fault and it's going to be report or unreported. An accident involving two vehicles could also be termed a collision.

Accident report form - this is often the report filed by police, often called the police report, containing the important information regarding the vehicle collision. This report will include the names of all individuals involved, vehicles involved, property damaged and citations that were issued.

Adjuster - this is often the one that will evaluate the particularloss reported on the policy after an accident or other incident. they're going to make the determination on what proportion are going to be paid on the auto policy by the Insurer.

Agent - this is often a licensed and trained individual who is permitted to sell and to service insurance policies for the auto insurance firm .At Fault - this is often the quantity that you simply , the policy holder, contributed or caused the auto collision. This determines which insurance agency pays which portion of the losses.

Auto Insurance Score - this is often a score almost like credit score that evaluates the knowledge in your credit line report. These scores are used when determining pricing for your auto policy . Negative marks on your credit report can increase your auto insurance premiums. the utilization of this information to work out policy pricing does vary from state to state.

Automobile Insurance - this is often a kind of policy that covers and protect against losses involving automobiles. Auto Insurance policies include a good range of coverage's counting on the policy holders needs. Liability for property damage and bodily injury, uninsured motorist, medical payments, comprehensive, and collision are a number of the common coverage's offered under an auto policy .

Binder - this is often a short lived short-term policy agreement put in situ while a proper permanent policy is put into place or delivered.

Bodily Injury Liability - this is often the section of an policy that covers the value to anyone you'll injure. It can include lost wages and medical expenses.

Broker - this is often a licensed individual who on your behalf sells and services various insurance policies.

Claim - this is often a proper notice made to your insurance firm that a loss has occurred which can be covered under the terms of the auto policy .

Claims Adjuster - This person employed by the insurance agency will investigate and settle all claims and losses. A representative for the insurance agency to verify and ensure all parties involved the loss, get compensated fairly and properly .

Collision - The portion of the policy that covers damage to your vehicle from hitting another object. Objects can include but aren't limited to; another vehicle, a building, curbs, guard rail, tree, telegraph pole or fence. A deductible will apply. Your insurance firm will follow the opposite parties policy for these cost should they be guilty .

Commission - this is often the portion of the auto policy that's paid to the insurance broker for selling and servicing the policy on behalf of the corporate .

Comprehensive - this is often some of the policy that covers loss caused by anything aside from a collision or running into another object. A deductible will apply. This includes but isn't limited to vandalism, storm damage, fire, theft, etc.

Covered loss - this is often the damage to yourself, people or property or your vehicle that's covered under the auto policy .

Declarations Page - this is often the a part of the policy that has the whole legal name of your insurance firm , your full legal name, complete car information including vehicle identification numbers or VIN, policy information, policy number, deductible amounts. This page is typically the front page of the policy .

Deductible Amount - this is often the portion of the auto policy that's the quantity the policy holder must ante up front before the insurance firm contributes and is required to pay any benefits. This amount are often within a good home in price and varies from approximately $100 - $1000. The larger amount you pay during a deductible the lower your normal monthly/yearly policy will cost. this is often the portion of the auto policy that might be applicable only to comprehensive or collision coverage.

Discount - this is often a discount within the overall cost of your policy . Deductions are often given for a spread of various reasons including an honest driving record, grades, age, legal status , specific features and safety equipment on the car .

Emergency Road Service - this is often the a part of an auto policy that covers the value of emergency services like flat tires, keys locked within the car and towing services.

Endorsement - this is often any written change that's made to the auto policy that's adding or removing coverage on the policy.

Exclusion - this is often the portion of the auto policy that has any provision including people, places or things that aren't covered under the policy .

First Party - this is often the policyholder, the insured in an policy .

Gap Insurance - this is often a kind of auto insurance provided to people that lease or own a vehicle that's worth but the quantity of the loan. Gap auto Insurance will cover the quantity between the particular cash value of the vehicle and therefore the amount left on loan should the care be stolen or destroyed.

High-Risk Driver - If you've got a spread of negative marks on your insurance record including driving under the Influences, several traffic violations, etc. you'll be labeled as a risk to the insurance firm . this may increase your policy or may cause you to ineligible for coverage.

Insured - The policyholder (s) who are covered by the policy benefits just in case of a loss or accident.

Insurer - is that the Auto insurance firm who promises to pay the policy holder just in case of loss or accident.

Liability insurance - This a part of an auto policy which legally covers the damage and injuries you cause to other drivers and their vehicles once you are guilty in an accident. If you're sued and brought to court, liability coverage will apply to your legal costs that you simply incur. Most states would require drivers to hold some variation of liability coverage Insurance and this amount will vary state by state.

Limits - this is often the portion of the auto policy that explains and lists the monetary limits the insurance firm can pay out. within the situation you reach these limits the policy holder are going to be liable for all other expenses.

Medical Payments Coverage - this is often the portion of an auto policy that pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. it's also referred to as personal injury protection or PIP.

Motor Vehicle Report - The automobile report or MVR may be a record issued by the state during which the policy holder resides therein will list the licensing status, any traffic violations, various suspensions and./ or refractions on your record. this is often one among the tools utilized in determining the premium prices offered by the insurance agency. this is often also wont to determine the probability of you having a claim during your policy period.

No-Fault Insurance - If you reside within a state with no-fault insurance laws and regulations, your auto policy pays for your injuries regardless of who caused the accident. No-fault insurance states include; Florida, Hawaii, Kansas, Kentucky, Massachusetts, 

Michigan, Minnesota, New Jersey, New York, North Dakota , 

Pennsylvania, Utah and Washington, DC.

Non-Renewal - this is often the termination of an auto policy on the given expiration date. All coverage will cease as of this date and insurer are going to be released of promised coverage.

Personal Property Liability - this is often the portion of the auto policy that covers any damage or loss you cause to a different person's personal estate .

Personal Injury Protection or PIP - This portion of an auto policy pays for any lost wages or medical expenses to you and any passengers in your vehicle following an accident. PIP is additionally referred to as medical payments coverage.

Premium - this is often the quantity charged to you monthly, yearly or the other duration prescribed by insurance firm and policy holder and paid on to the auto insurance firm . A premium is predicated on the sort and amount of coverage you select for your vehicle(s) and yourself. Other factors which will affect your premium prices include your age, legal status , you're driving and credit report, the sort of car you drive and whether you reside in an urban or country . Premiums vary by insurance firm and therefore the location you reside .

Quotation - this is often the quantity or estimated amount the insurance will cost supported the knowledge provided to the agent, broker or auto insurance firm .

Rescission.- this is often the cancellation of the policy dated back to its effective date. this is able to end in the complete premium that was charged being returned.

Rental Reimbursement - this is often the portion of the auto policy that covers the value of an automobile rental of comparable size should the covered vehicle be in repair from a reported incident.

Replacement Cost - this is often the quantity of cash it might cost to exchange a lost or damaged item at it's actually new replacement value. This monetary amount would be supported a replacement identical item within the current local market.

Salvage - this is often the auto policy holders property that's turned over tot eh insurance agency during a loss final settlement. Insurance companies will sell the salvage property in hopes to recoup a number of its monetary loss thanks to the loss and settlement.

Second Party - this is often the particular insurance firm within the auto policy .

Surcharge - this is often the quantity added to your auto policy premium after a traffic violation or an accident during which you were found to be guilty .

Third Party - this is often another person aside from the policy holder and auto insurance firm who has faced a loss and should be ready to collect and be compensated on behalf of the policy holder's negligence.

Total Loss - this is often complete destruction to the insured property of a policy holder. it's been determined that it might be an excellent sum of cash to repair the item instead of replace the insured piece of property to its state before the loss.

Towing Coverage - this is often the portion of the auto policy that covers a specified amount for towing services and related labor costs.

Under insured Driver - this is often the portion of an auto policy which covers injuries to you caused by a driver without enough insurance to buy the medical expenses you've got incurred from the accident. this is often portion of the policy can vary state by state as some states include damage to the car during this section.