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.

Auto insurance can be a complicated subject and to understand it in a better manner it becomes important to understand the jargon and terminology used in this field. Here is a compilation of glossary of terms related to auto insurance that you may find beneficial.

• Collision coverage: This is an optional part of vehicle insurance that covers you in case you meet with an accident or collide with a stationary object. It does not matter who is at fault in such cases. However, the catch is that such additional coverage may carry a deductible which is an amount payable upfront in case such a mishap occurs for the insurance company to start compensating.
• Car insurance: This is an insurance that protects the car against any type of loss.
• Comprehensive physical damage coverage: This type of coverage is comprehensive and protects in cases of vandalism, fire, theft, falling objects, flood, or hail. In this case as well there may be a deductible applicable.
• Claimant: Claimant is a person or entity who asserts any rights of recovery.
• Collision Deductible waiver: This is a type of coverage that waives the deductible in case you are hit by an uninsured motorist.
• Conditions: These are the obligations of the insurance provider and the insured as specified by the insurance contract.
• Claim adjuster: A claim adjuster is a professional who is hired in order to investigate a claim.
• Coverage: These are the benefits and protection which are offered by the insurance company.
• Covered person: The person who is named as the insured in the insurance policy is called the covered person.
• Deductible: Deductible is the amount determined by the policyholder that must be paid before the insurance company starts to pay for any losses. Usually the amount of the deductible is inversely proportional to that of the premiums. Therefore the higher the premiums; lower will be the deductible.
• Depreciation: The loss of the worth or value of the vehicle due to normal or excess wear and tear over a period of time. The depreciated value of a car or a vehicle is an important factor in lease contracts.
• Driving record: This is a record of your driving history, comprising of information related to any accidents or offences, and may be used by insurers to determine the risk involved in the insurance contract.
• Discount: This is a reduction in your premiums based on certain criteria which may be beneficial to the insurance provider.

Auto insurance can be a complicated subject and understanding the terminology used in this field may help in better management of your auto insurance policy. Here are some terms related to auto insurance which may help in understanding and economizing on your vehicle insurance.

• Accidental death benefit: This can be defined as an additional life insurance policy assistance that offers a death benefit besides the policy’s basic death benefit if the insured person’s death happens because of an accident.
• Actual cash value: Actual cash value is the amount corresponding to the fair market value of the stolen or spoiled property instantaneously previous to the loss. For real assets, this sum can be based on an assessment of the fair market value of the assets before and subsequent to the loss. For automobiles, this amount can be calculated by neighborhood vicinity private party sales and dealer quotations for similar automobiles.
• Adjuster: An adjuster is a person who is responsible for investigating and evaluating for an insurance carrier in case of an accident.
• Agent: An agent is an individual who is licensed to sell insurance on behalf of an insurance company.
• Arbitration: Arbitration is the evaluation made by an impartial entity comprising of experts as to the value of the vehicle or property and the extent of damage.
• Auto Insurance Premium Discounts: These are the discounts offered by the insurance provider on premiums because of certain positive traits demonstrated by the insured such as a good driving record and observing safety rules conscientiously.
• Blue book: A blue book is a publication that calculates and determines the worth or value of used vehicles or cars.
• Binder: An insurance binder is an oral or written agreement that is temporary in nature and remains in force till an official formal policy is accepted or denied.
• Bodily injury: This is a liability coverage that pays in case of injury caused to another party or death due to an automobile accident caused by you (the insured).
• Broker: A broker is an insurance salesperson who assists in finding an insurance product for consumers by dealing with companies and agents.
• Burglary: This is the forceful and unauthorized entrance into a home or vehicle that results in a loss of the property for the insured.
• Claim: A claim is a request for compensation for losses suffered due damages. There are two basic types of claims; third party claims are those in which a person makes a claim against another person’s company. First party claims are those that are directly made by a person to his or her own insurance company.