Car Insurance Terms
Are you confused by all of the car insurance jargon? Here are some definitions to help you when you purchase tampa car insurance.
Accidental Death Benefit – A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident.
Act of God – Natural occurrence beyond human control or influence. Such acts of nature include hurricanes, earthquakes, and floods. If a hurricane comes from the Gulf of Mexico and clobbers Tampa and your car is destroyed that is considered an act of God.
Additional Insured or Additional Interest – A person or an organization, other than the named insured or covered person, who is protected under the named insured’s auto policy. If an auto is leased, the leasing company may want to be listed as an Additional Insured as well as a lien holder or loss payee. Another example of this would be when a real estate brokerage requires their Realtors to make the brokerage an additional insured.
Agent – Someone who acts as a representative for an insurance company and sells insurance, usually for a commission. This individual could be an ‘exclusive’ or ‘non-exclusive’ agent.
Anti-Theft Device – Devices designed prevent a car from being stolen, broken into or vandalized. Devices that assist in the recovery of a stolen vehicle is also considered to be an anti-theft device. Examples include car alarms, keyless entry, starter disablers, steering wheel locks, motion detectors, parts of the vehicle etched with the Vehicle Identification Number, and recovery systems like LoJack.
Appraisal - Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.
At-Fault – The party that is legally liable for the damages in an accident.
Binder – A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.
Bodily Injury Liability – This insurance will cover physical injury or death to a third party of you are the party responsible for the accident. This insurance covers you if sued for injuries, lost wages, economic damages or pain and suffering.
Claim – Any request or demand for payment under the terms of the insurance policy.
Claim Adjuster – A person responsible for investigating and settling a claim.
Collision Coverage – This insurance coverage pays for the repair and loss of use of your vehicle because of an accident with another vehicle or object, such as a concrete wall.
Commercial Lines – Products designed for and bought by businesses.
Comprehensive Coverage - This insurance pays if your vehicle is damaged or totalled due to any cause other than a crash. Fire, flood, hail, theft and falling tree are a few examples of the types things comprehensive coverage pays for. If you have a car loan your lender might require this type of insurance.
Declaration Page – That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.
Deductible - This is the amount of money you have to pay before your insurance company will begin to pay towards a claim.
Defensive Driver Course – These are classes either offered through or approved by Departments of Motor Vehicles to improve driving skills. These courses may provide insurance discounts.
Economic Loss – Total financial loss resulting from the death or disability of a wage earner, or from the destruction of property. Includes the loss of earnings, medical expenses, funeral expenses, the cost of restoring or replacing property and legal expenses.
Field Adjuster – An insurance adjuster who mostly operates primarily outside of an office and often meets personally with the general public. Field adjusters can conduct damage inspection, accident scene investigation, face-to-face meetings and negotiations with claimants.
Forced Placed Insurance – Insurance purchased by a bank or lender on an uninsured car owners behalf to cover the vehicle, so that the lender receives payment if the property is damaged or destroyed.
Gap Insurance - This optional insurance covers the difference between what your car is worth when it is wrecked and what you owe on it.
Indemnification – The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.
Insurance Fraud – The act of falsifying an accident to an insurance company in an effort to obtain payment that would not otherwise be made. Common types of insurance fraud are fake injuries, staged accidents and inflated medical bills.
Insured – Those people (relatives, friends, passengers etc.) covered by your car insurance policy.
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.
Medical Payments Insurance – This insurance pays medical expenses related to an automobile accident. It is subject to the terms, limits and conditions of your policy contract. This insurance pays regardless of who was “at fault.” It pays for injuries to passengers in your vehicle or other vehicle that you are driving with their consent.
No-Fault Insurance – This insurance may pay for your medical expenses, lost wages, or other accident-related expenses regardless of who was at fault.
Physical Damage – A phrase frequently used to explain the kind(s) of coverage that apply to damage to your car.
Property Damage Liability - This covers any damage to another person’s physical property, including the loss of use, where you are the responsible party. It also covers attorney costs if a lawsuit is filed against you.
Rental Reimbursement - Sometimes you will need a rental car because of an accident. This elective insurance covers all or part of a rental car expensive as a result of a covered loss.
Under Insured Motorist – You may get into an accident with someone who is under insured. This coverage handles bodily injury caused by an at fault driver with insufficient insurance coverage to pay for the covered person’s injuries.
Uninsured Motorist – Insurance that covers bodily injury caused by an at fault driver who does not have car insurance or who leaves the scene.
Towing/Labor Coverage - Imagine that you need a tow truck to take your car to the shop. This coverage compensates you for the towing expense.
Liability Coverage – This insurance pays others for any damage caused where you were at fault. It also pays for lawyer fees in case you are sued for those damages. The two types of liability coverage are Bodily Injury and Property Damage.
Umbrella Liability - An insurance policy that acts like an umbrella above your other types of coverage. You need to have a certain amount of liability coverage, such as home and auto insurance, before you can buy an umbrella policy. This insurance covers you if you are sued for amounts greater than the maximum liability coverage of your car insurance policy.
Emergency Roadside Assistance – This coverage handles most roadside emergencies such as towing, lockout services, flat tires, car malfunction, empty gas tank, dead battery etc.
