One factor insurance companies take into consideration when determining rates is age. A “youthful driver” is less experienced and charged more for coverage. However, there are different categories of youthful drivers, including: + Unmarried female under 25 years of age [...]
To “write a policy” is insurance lingo for providing insurance.
This coverage is available in certain states and only if you have Uninsured Motorist Coverage. With this coverage, if an accident with an uninsured motorist causes damage to your auto, and if you have the correct documentation that the other [...]
In general, a waiver is the surrendering or giving up of a privilege that is known to exist. For example, a waiver can reject or exclude liability for a stated cause such as Uninsured Motorist Liability coverage.
This is coverage provided under First-Party Benefits to reimburse you for lost wages. In most states the amount of wages recoverable is limited to a percentage of the lost wages. These are the wages that would have been earned in [...]
A policy or other contract that has no legal validity is described as void. When an insurance company voids a life insurance policy, it is usually due to the discovery of misrepresentation of material facts by the person insured. It [...]
An accident for which no one is responsible is considered an Act of God or Vis Major.
Demerits are charged on your driving record for moving violations and accidents. How they are charged varies from state to state. For instance, in some states, a single violation can result in multiple points. For example, you can get additional [...]
This is a card or document issued by your Department of Motor Vehicles that shows the vehicle that has been registered (including year, make, model, VIN).
This is a unique number given to a vehicle by the manufacturer that can help the insurance company double-check certain characteristics of your vehicle, which affect the premium. It is found on the driver’s side of dashboard, in front of [...]
This is malicious mischief or willful physical damage to property and its damages are covered by comprehensive.
This is an agreement by an insurance company to pay a specified amount of money or “agreed value” to, or on behalf of, the insured for a defined loss.
This is when your driver’s license is in force as opposed to having expired, been suspended or revoked.
Shown as UMPD on the policy, this provides for damage to your vehicle in an accident with an uninsured motorist, but only if you do not have collision coverage. This coverage varies by state.
This coverage pays the collision deductible if the insured vehicle is damaged by an uninsured motorist. The vehicle must have Collision coverage in order to purchase Collision Deductible Waiver. The Collision Deductible Waiver limit must match the Collision deductible.
This bodily injury coverage pays for injuries, medical costs, rehabilitation, pain and suffering and any funeral costs suffered by you and/or your passengers in an accident caused by a driver that has no insurance or insufficient insurance. It is applicable [...]
The unearned premium is the portion of the written premium that has not been exposed to loss. In other words, if you have paid an annual premium and your insurance is cancelled before the term expires, then a portion of [...]
This is the process of identifying the risk of a claim by the person insured and classifying his or her potential degree of risk so that appropriate premium rates can be charged.
This person works for either an insurance company or an agency and is a specialist trained in evaluating risks and determining the appropriate premium rates.
In most states your Uninsured Motorist coverage also includes protection coverage for accidents involving individuals who do not have adequate (or enough) insurance to pay for accidents they have caused. See Uninsured Motorist Coverage.
Stacking allows you to multiply (or “stack” ) the amount of uninsured/underinsured motorist coverage by the number of vehicles on your policy. If you had 2 vehicles, you would have twice as much uninsured/underinsured motorist coverage, per vehicle, if you [...]
This can be a separate policy or an endorsement to your home or auto policy, and supplements the liability coverage you already have on your homeowners and auto policies. It will cover you if you are found at fault for [...]
This is a non-motorized portable unit and camper designed to provide temporary living quarters for recreational or camping use, or to transport a recreational vehicle, which does not require a special highway permit when towed.
Approved schools you can attend to remove a traffic violation from your motor vehicle record. You can only get violations removed by attending traffic school once every 18 months.
This is a provision included in many auto insurance policies that provides for reimbursement of towing expenses (and any labor necessary at the site of an accident) resulting from an accident.
This is a loss that is so severe that the insurance company concludes that the vehicle is not repairable, taking into account factors such as the value of the vehicle, the amount of the repairs and the salvage value of [...]
Under a state with a Tort System as opposed to No-Fault System Add-On Benefits, your liability insurance is generally designed to cover an unintentional tort action (such as accidents). In a No-fault state, an insured cannot sue for general damages [...]
There is a limit of time within which a claim and proof of loss must be submitted after the accident or loss. The limit varies and is determined by the individual insurance company.
A threshold is a boundary that must be crossed before an injured person can make a tort liability claim. A threshold can be either monetary or verbal. For example, a monetary threshold would be when the injured victim had medical [...]
The date and time the coverage under an insurance policy ends because of cancellation by the insured or insurance company.