Glossary
Additional
Insured : An individual or organization covered
by an insurance policy other than the named insured in the
policy declarations. In an automobile policy, anyone who
drives the car with the owner's consent is an additional
insured; although, in most cases, the additional insured
must be named in the policy.
Accident
: What auto insurance is designed to cover.
Accidents may be considered either at fault or not at
fault. If you have at fault accidents on your driving
record, your rates will be higher.
Additional
Insurance : Insurance that supplements an
already existing policy. It is uncommon that the company
or its duly authorized agent allows additional insurance.
Auto
Insurance : Insurance designed to protect
against losses involving automobiles. All types of
policies, including basic liability, collision and
comprehensive, etc. come together to constitute automobile
insurance.
Auto
Loan Lease Coverage Gap Coverage : Provides
coverage, in case of a total loss, for the 'gap' between
the amount due under the terms of the vehicle's loan/lease
and the actual cash value of the vehicle at the time of
the loss. Please note that there are vehicle eligibility
requirements and the coverage may not be available in your
state.
Automobile
Insurance : A form of insurance that protects
against losses involving autos. Different types are
available depending on the needs and wants of those buying
policies. Examples of coverage types include: bodily
injury liability, property damage liability, medical
payments, and collision and comprehensive coverage for
physical damage to the insured's vehicle.
Automobile
Insurance Plans : The name for assigned risk
plans. These are plans set up and monitored by the state
to help people who are unable to secure auto insurance
through standard insurance carriers. See Assigned Risk.
Basic
Auto Policy : Although still used today to
insure substandard risks, two-wheel motorized vehicles,
and commercial autos, the Basic Auto Policy has been
primarily replaced by the Personal Auto Policy, which
combines both physical damage coverage and liability
insurance for claims arising out of the ownership or use
of a vehicle.
Basic
Limits of Liability : The least amount of
liability coverage that can be purchased, which is
generally equivalent to the minimum amount required by
state law. In determining rates, a carrier will use the
basic limits to develop the base rates. If an insured
person wants higher limits, the carrier applies an
increased limits factor to the base rate in calculating
the new premium for the increased coverage.
Claim :
A demand for payment under an insurance contract for the
estimated or actual amount of loss.
Classic
Car Insurance : A special type of coverage,
which applies to collector cars, that could not be
otherwise insured through regular channels.
Collision
Coverage : This coverage helps pay for repairs
to a vehicle damaged by a collision with another vehicle
or object. Examples of this include a collision with a
tree, trash can or garage door. Collision may also provide
coverage if a car rolls over even if another vehicle is
not involved. To obtain this coverage, please choose a
deductible, which represents the portion of damages you
would pay before your insurance coverage would activate.
If you do not wish this coverage, simply choose “No
Coverage.”
Collision
Insurance : A policy that covers the damage to
your own vehicle in the event of an accident.
Comprehensive
Coverage : This helps cover damage to a car
resulting from incidents other than those governed by
collision coverage. Examples of this may include damage or
loss resulting from fire, theft, vandalism, falling
objects or certain natural disasters or accidents
resulting from a collision with an animal. To obtain this
coverage, please choose a deductible, which represents the
portion of damages you would pay before your insurance
coverage would activate. If you do not wish this coverage,
simply choose “No Coverage.”
Continuous
Coverage : Continuous coverage refers to the
length of time you have maintained insurance on your
vehicle.
