Glossary
Insured : A person who is protected by the policy.Insuring Agreements : Part of an insurance policy that states the coverage of the contract.
Insurance
Provider : This is the company which sells you
your insurance provider, and who is your point of contact
in the event that you need to make an insurance claim.
Liability
Insurance : Liability insurance pays on behalf
of the insured for certain types of injury to others.
Mutual
Insurance Company : A company with no capital
stock that is owned and controlled by policyholders.
Online
Quote : A quote that you can get online. It is
the amount an insurer estimates to be the cost of
providing a service based on the available information.
No
Claims Bonus : This is a percentage bonus
discount given to a driver on their original premium, in
the event that they do not make a claim for the duration
of their policy.
Personal
Auto Policy : The most common auto insurance
policy sold today. Often referred to as PAP, this policy
is written in simple wording and provides coverage for
liability, medical payments, uninsured/underinsured
motorist coverage, and physical damage protection.
Policy :
The actual contract between you and the insurance company
which spells out your coverages, rights, and obligations.
Learn more about the contents of insurance policy
documents.
Premium
: The price of insurance an insured person pays
for a specified risk for a specified period of time.
Property
Damage : Damage to tangible property. In
insurance, people often refer to Property Damage as the
coverage afforded for financial protection against damage
to another?s property resulting from an accident.
Policy
: This is the document which outlines the terms
and conditions of the car insurance that you have
purchased
Policyholder
: This is the person who is insured and to whom
the insurance policy refers.
Premium
: This term refers to the price you pay for
your car insurance policy.
Quote
: An amount an insurer estimates to be the cost
of providing a service based on the available information.
Rental
Reimbursement : This coverage pays toward the
expenses to rent an auto if you have a loss (covered under
your Comprehensive or Collision coverage) and your auto is
disabled longer than 24 hours. Rental Reimbursement may
also be referred to as Extended Transportation Expenses,
dependent on the state, which provides the same coverage.
Safety
Equipment : Enhancements in your car, such as
automatic seat belts and driver-side and passenger-side
airbags, that reduce your risk of being injured in a
collision. Vehicles with safety equipment often qualify
for discount car insurance.
Third
Party Fire and Theft : Third party fire and
theft provides additional insurance against fire or theft
above what is provided by third party only.
Third
Party : This refers to any other individual
involved in a car accident. This may be another car,
cyclist, pedestrian or even the tenant of the house you
hit.
Third
Party Cover : Provides covers any liability you
may have to a third party if you are involved in an
accident.
Third
Party, Fire and Theft Cover : Similar to Third
Party Cover, this type of policy covers any liability you
may have to a third party if you are involved in an
accident. In addition it provides compensation for your
vehicle in the event of a theft or damage through fire.
Voluntary Excess : Agreement with your provider to pay a higher excess, in the event of a claim, in return for a Lower premium for your policy.
