|
Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.
Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.
Premium
The money paid for an insurance policy based upon the coverage provided.
Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.
Insured
The person(s) entitled to coverage in case of an accident or loss.
Nonrenewal
The termination of an insurance policy at its normal expiration date.
Cancellation
The termination of an insurance policy before its normal expiration date.
|
Did You Know?