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).

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.