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.

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).

This is a continuation of the glossary of terms related to auto or vehicle insurance. Hope that this compilation helps you in sifting the jargon out of the prose and assist in understanding the terminology in a better manner and perhaps hae an upper hand as far as vehicle insurance is concerned.

• Drivers training discount: This is a discount that may be offered if a particular type of training involving driving is undertaken by the insured individual.
• Excess: This is another name for deductible and is a dollar amount that the insured person has to pay when a claim is filed, before the insurance company starts paying for any damages.
• Extras: These are additional coverage available which extend beyond the traditional protection that is offered in an auto insurance policy.
• Exclusions: These are the losses for which the insurance company may not pay; for instance nuclear war or damage due to the same.
• Emergency roadside service coverage: This is a type of cover that is usually an additional protection offered in order to cover the costs associated with towing and tire repair.
• GAP coverage: This is a type of cover that pays the amount that is deficient between the amount owed to a lease company and the actual worth of the car. Such cover is usually handy in the early days of the contract when the worth of the vehicle drops dramatically within a short period of time.
• Garage location: The location where the vehicle is parked when it is not being used.
• Good student discount: This is a discount offered to those students who are in the top twenty percent of their class.
• Hit and run: This is a type of accident where typically a driver causes an accident and then flees the scene.
• Hazard: The chance or a situation or an obstacle that increases the risk or chance of an accident happening.
• Identification card: This is a card that may be issued by your insurance company identifying you as the insured with some unique information on the card.
• Indemnification: This can be defined as the providing of compensation in order to restore an individual or an entity back to the same situation before the loss occurred.
• Insurance fraud: This is the falsifying of facts in order to be compensated by the insurance company in a fraudulent manner.
• Inspection: In context of auto insurance, inspection can be defined as the checking and verification of a vehicles condition.

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.