This is the fourth part of the glossary of terms related to auto or vehicle insurance. It may benefit you in understanding the terms and phrases used in the field of auto insurance in a better manner and give you an advantage of superior knowledge when you geal with auto or vehicle insurance.

• Insured: An insured is the individual or an entity that is covered by an insurance policy.
• Insurer: Insurer is the insurance company or the insurance provider.
• Lapse in coverage: A lapse in coverage occurs when the insurance policy is either terminated or canceled.
• Leased vehicle: A vehicle that is leased and not rented or bought and has lower payments than a car or auto loans. The vehicle can be returned at the end of term or it can be bought by the user.
• Liability insurance: This is a type of insurance that pays when the insured party is liable for injuries to other persons or properties.
• Medical payments: These are the payments which will cover any funeral or medical expenses for you or your passengers when you meet with an accident. It does not matter if the fault lies with you or any other party.
• Multi-car discount: This is a discount that may be offered by an insurance company if an individual insures more than one vehicle with the same insurance company.
• Mechanical breakdown insurance: This is a type of insurance that covers you in case there is mechanical breakdown in your car or vehicle.
• Motor vehicle report (MVR): This is a report issued by the driving license agency as to the individual’s past driving records and violations (if any).
• Named Insured: A named insured is a person who is named as the insured individual or entity in a auto insurance contract.
• Negligence: Negligence is the failure to exercise reasonable caution and care which leads to damage to a property or a third party.
• No-fault insurance: This is a type of insurance in which every driver files a claim for medical and other expenses associated with the accident regardless of the person or entity who is at fault.
• Non-renewal: In such cases the insurer does not renew the policy at the end of its term.
• Occurrence: This is an event that leads to the loss of the insured person or entity.
• Payment recovery: In such cases the insurance company will take the deductible from the third party involved in an accident if the fault does not lie with its own insured person or entity (consumer).