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Car Insurance Definitions | |||||||
The assertion of a legal right against an insurer, that carries with it a demand for appropriate relief. What is a Collision? A type of physical damage insurance, which covers loss due to the insured object striking another object.What is Comprehensive Coverage?A broad physical damage coverage which covers all property losses except collision and those perils or property which are specifically excluded.What are Conditions? The portion of an insurance contract which sets forth the rights and duties of the insured and insurance company.What is a Contract? A legal agreement between two parties promising a certain performance in exchange for a certain consideration.What are Declarations? The section of an insurance contract which shows who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies.What is a Deductible? Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits.What is a Driver Improvement Course? A voluntary refresher course available for drivers age fifty-five (55) and older to enhance their driving skills. What is an Endorsement? A document, which is attached to the policy and modifies or changes the original policy in some way.What is an Exclusion? Section of the insurance policy, which list property, perils, person, or situations which are not covered under the policy.What is a Financial Responsibility Law? State law in some states which requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.What is Fraud? A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.What is Garage Location ? The zip code where your vehicle is parked when not in use and usually corresponds to your primary residence.What is Indemnity? A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.What is Insurance? A contract whereby one undertakes to indemnify another, pay or allow a specified amount or a determinable benefit upon determinable contingencies.What is Liability Insurance ?Insures the individual for financial losses which arise out of the person's responsibilities to others imposed by law or contract.What are the Limits of Liability ? The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.What is Named Insured ? The first person in whose name the insurance policy is issued.What is an Occasional Driver? The person who is not the primary or principal driver of the vehicle.What is Personal Injury Protection ? A coverage provided in Auto insurance policies in some states that provides coverage for the insured's own injuries on a first-party basis, without regard to fault.What is Physical Damage ? In auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody or control.What is a Policy? An insurance contractWhat is a Policy Expiration Date ? The date when your current insurance policy expires. This date can be found on your current policy, Declaration page, insurance identification card or recent cancellation notice. This date is not to be confused with the date of your next payment or when your renewal payment is due.What is a Policy Term ? The length of time that the policy is in force. Most companies offers annual and semi-annual policies.What is a Premium? An amount of money paid to an insurance company in return for insurance protection.What is Primary Use? What your vehicle is mainly used for: ? To/From Work: If you use your vehicle to drive to and from your work and/or school. ? Business: If your vehicle is used for one or all of the following: used to make sales calls, used as vehicle for business trips to bank or post office, picking up supplies, going to different locations owned or leased by a partnership or corporation that have a business listed as and additional interest on the car ? Farm: If your vehicle is used primarily on a farm, ranch or orchard Artisan If your vehicle is operated by you in a trade or business where the vehicle is: owned or leased by an individual operated solely by the named insured or other resident relatives used to transport tools or other materials where such transport is incidental to the insured's trade or business at no more than 2 job sites per day.What is a Principal Driver? The person who drives the car most often Private Passenger Autos Ordinary cars, station wagons and jeeps, utility autos (pick-ups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.What is Property Damage ? A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.What is a Salvage? Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss.What is an SR-22? A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.What is Subrogation? The transfer to the insurance company of the insured's right to collect for damages.What is Uninsured/Underinsured Motorist ?Automobile coverage designed to provide protection for the insured should he or she be included in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.What is a Vehicle Identification Number (VIN) ? The vehicle identification number (VIN) on your vehicle. This number is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN number is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car. |
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