This is the continuation of the fourth part of the glossary of terms related to auto insurance. Hope you find it beneficial in understanding auto insurance or vehicle insurance in a better manner by filtering the terminology and perhaps save money when you get into such auto insurance contracts.

• Personal Injury Protection: This is usually called as “no-fault” insurance. This was intended to compensate swiftly not considering fault or negligence for tangible financial to a driver or passenger wounded in the automobile and to pedestrians hurt by your vehicle, because of its use or functions. It is applicable to personal injuries only, not for material harm to the automobile.
• Policy: This is the written contract between the insured person or entity and the insurer or the insurance company that binds both parties to it.
• Policy lapse: This simply means that the policy has been canceled or terminated and it has lapsed or ceased to exist.
• Policy period: This is the amount of time or the period for which the insurance policy provides coverage or protection to the insured person or entity.
• Premium: Premium is the periodic amounts that are shelled out by the insured individual or entity in order to keep the auto insurance policy in force.
• Primary use: The main use of the vehicle is called the primary use.
• Property damage liability coverage: This is a type of coverage that offers protection in case there is damage to the property of a third party due to the insured driver’s fault.
• Rate: A rate can be defined as a base unit that helps in determining the premium. This is not the premium itself but only helps in determining the amount shelled out as premiums for an auto insurance policy.
• Risk: This is the chance of suffering a loss in the context of the use of a motor vehicle by the insured.
• Reinstatement: This can be defined as the restoration of a canceled policy.
• Replacement cost: This is the cost that will be required to repair or replace a certain damaged part of a vehicle.
• Short rate cancellation: This is the cancellation by the insured of an insurance policy for which the returned, unearned premium is reduced by management expenses sustained when the insurance company places the policy on its books.
• Underwriter: An underwriter is a person in an insurance company whose job is to decide what insurance risks will be accepted and on what conditions.
• Uninsured motorist coverage: This type of cover is also abbreviated to UIM provides coverage for bodily harm done by a driver who is underinsured. It usually does not cover damage to your automobile.
• Uninsured motorist bodily injury coverage: This is a type of insurance that covers the insured and family unit if wounded by a hit-and-run driver or motorist or an uninsured motorist,: the only condition being that the other driver should be at fault and not the insured person or entity.
• Unsatisfied Judgment fund: This is a unique fund which, subject to numerous limitations, pays persons for physical damage occurring due to the use of a motor vehicle for their damages if the person acquires a judgment against the accountable party and is powerless to collect on that judgment.
• Young drivers: These are drivers under the age of twenty five years are regarded as “young drivers” and, possibly due to their inadequate skill on the road, considered more prone to make a claim. Therefore higher premiums may apply for such people.