| A | B |
|---|
| Term | Definition |
| 25/50/15 | Represents (in the $ thousands) your liability limits for per-person bodily injury, bodily injury for all persons injured in any one accident, and property damage liability. Most states require a mandatory minimum amount |
| Accident Report Form | Police report filed when an accident occurs |
| Assigned Risk | A person whose official driving record (accidents and tickets) is so poor that he/she cannot purchase commercial auto insurance, and must be assigned to a state operated or designated insurance program at high rates. |
| At-Fault | The degree to which you caused or contributed to an accident; determines whose auto insurance company pays what portion of the damages. |
| Bodily Injury Coverage | If you are at fault for an automobile accident, this policy pays the medical expenses and additional damages for which you are liable for other individuals injured in the accident. |
| Cancellation | A policy that ends before the term expires; different than nonrenewal. Reasons for ending a policy may include lack of payment, fraud, license revocation/suspension, health issue that may impair driving |
| Claim | Request for your insurance to pay for an accident |
| Claims Adjuster | A representative of an auto insurance company who investigates and settles claims to ensure that all parties – you, your auto insurance company, and anyone else involved – receive fair compensation |
| Clear Title | A title without any kind of lien or levy from creditors or other parties and poses no question as to legal ownership. |
| Collateral | Assets pledged to pay off a debt if payments are not made according to the contract; also called security |
| Collision Coverage | Covers damage sustained to car during a crash (Car hits an object, car rolls over, etc..) |
| Comprehensive Coverage | Covers damage caused not in an accident (Storm damage, fire, theft, etc..) |
| Covered Loss | Any damage to your vehicle or others |
| Deductible | The amount the insured must pay 'out of pocket' before the insurer will cover the remaining costs |
| Deductible Clause | A clause in an insurance policy stipulating that the insured will be liable for a specified amount of each loss, inury, etc… and that the insurance company will be liable for any additional costs up to the insured amount. |
| Depreciation | Decrease in value of an asset due to obsolescence or use |
| Effective/Inception | The date your insurance starts to take effect |
| Expiration Dates | When your insurance coverage ends and you need to renew. |
| Fair Market Value | The price that a given property or asset would fetch in the marketplace |
| Gap Insurance | If your car is totaled in an accident, this coverage helps pay the balance between the amount you owe on your loan or lease and the car’s estimated actual cash value. |
| Liability Coverage | Coverage for damage to others or their property |
| Lien | A creditor's legal right or interest in another property, usually lasting until satisfaction of the specific debt.; the creditor may take the car (repossess) if the borrower does not make payments. The lender is also concerned with protecting the asset; some loan contracts will stipulate the type/amount of insurance coverage that is required of borrowers |
| Motor Vehicle Report | Also known as a driving record. A report of an individual's driving record that insurance companies use to determine their risk of insuring a potential customer. Items included on record include suspensions or revocations, special endorsements, traffic citations, vehicular crimes, accidents, and DUI convictions. |
| No-Fault Insurance | In an accident, each insurance company compensates its own policyholders for the cost of minor injuries, regardless of who was at fault in the accident; currently required for Kansas auto insurance policies. The system is intended to lower the cost of auto insurance by taking small claims out of the courts |
| Nonrenewal | A policy won't be renewed once the current term expires. |
| Occasional Driver | A driver who is not the usual or most frequent driver of the vehicle listed on an auto policy. |
| Personal Injury Protection (PIP) | Covers medical costs and lost wages no matter who is at fault. |
| Premium | Recurring payment that covers the cost of insurance; paid by the policyholder to the insurer |
| Primary Driver | The person who drives the vehicle most often. Also referred to as the principal driver. |
| Rate | Price paid to keep your insurance |
| Risk Factors | Information used by insurers to evaluate risk and determine coverage options and cost. Items included are age, gender, location, vehicle type, marital status, accident history, driving record, annual mileage, and credit score. |
| Underinsured Motorist Bodily Injury Coverage | Coverage that pays for your bodily injury and related medical expenses when you’re injured in an automobile accident and the responsible party (other than yourself) doesn’t have adequate auto insurance. |
| Underwriting | The process of determining risk and rates for potential clients; takes place behind the scenes; agents and brokers use the terms set by underwriters and present them to customers. |
| Uninsured Motorist Bodily Injury Coverage | Coverage that pays for your bodily injury and related medical expenses when you’re injured in an automobile accident and the responsible party (other than yourself) doesn’t have auto insurance or can’t be located (hit-and-run). |
