Car Insurance Terms

automobile insuranceAdjuster – Insurance company representative employed to assess loss and decide claim settlement.

Appraisal – Method of determining the amount of loss in a first-party claim.

Arbitration Coming to agreement on amount of damages with the help of a third party arbitrator.

Binder – Confirmation of cover prepared by the insurer or agent before the policy documents are prepared.

Citations for driving uninsured – It is a legal requirement to buy insurance if you want to drive in Indiana. If you get caught driving without insurance, police officers would issue you a citation. If you cannot show proof of insurance covering the time you are caught you receive a minimum fine of $500 and $100 fee to reinstate vehicle registration.

Collision coverage – Damages related to car crashes paid by this cover if it is included in your policy.

Comprehensive coverage – Pays for vehicle related damages caused by theft, vandalism, hail, fire, or falling objects. Increasing deductibles may lower automobile insurance premium in case of both collision and comprehensive covers.

Coverage – Protection offered by your auto insurance policy.

Coverage limits – Maximum amount an insurance company will pay for any a claim.

Declarations – This page is where you’ll find your and your vehicle’s details as well as limits and deductibles on covers, beginning and end dates of the coverage, policy identification number, and a list of endorsements on it.

Deductible – Amount policyholder is expected to pay out of pocket before the auto insurer starts paying.

Endorsement – Changes made on a standard policy to meet policyholders needs better.

Exclusion – Special conditions that exclude certain covers in certain cases or at all times.

First-party coverage – Protection provided to the policyholder directly.

Full cover auto insurance – A policy that includes bodily injury and property damages liabilities, comprehensive and collision coverage and uninsured/underinsured motorist.

High-risk driver – Any driver with tickets, convictions or accidents for driving under the influence (DUI) is considered as a high-risk. Teenage and new drivers are also included in this class.

Auto insurance proof – A card provided by your carrier to show you have car insurance. You need to show this card on request to any policy officer.

Liability car insurance A policy that includes bodily injury, property damage, and uninsured/underinsured motorist (in some states) coverage.

Medical payments This coverage pays for your and your family members’ traffic related injuries.

Minimum limits – Lowest auto insurance liability coverage required by your state.

Motor vehicle record (MVR) – Document confirming motorists’ license status, convictions, and accidents.

Nonstandard insurers  Nonstandard insurance companies insure motorists with bad driving records.

Physical damage coverage – Collision & comprehensive covers bought to protect vehicles for accidents and total losses.

Policyholder – A motor vehicle owner who also owns the policy. Most states require the owner and policyholder to be the same person.

Premium – Price of automobile insurance for agreed coverage during a set period.

Proof of loss Documents provided to show that the loss claimed did happen.

SR22 filing Indiana requires SR22 Financial Responsibility Insurance before drivers’ licenses or vehicle plates can be reinstated following a suspension or revocation due to serious violation of Indiana Motor Vehicle Law like driving under the influence.

Subrogation clause –
This is a condition giving car insurance companies the right to seek damages from a third party who was at fault in the accident that caused the losses suffered by their policyholders.

Territory Location where auto is kept overnight.

Total loss – This is the position where fixing an auto would be more than it’s worth.
Uninsured/Underinsured motorist coverage (UM) Pays injury-related and auto damages when an uninsured motorist triggers a collision.

Underwriter – A person who decides on risks or insurers that takes on the risk.

Voided policy – Cancellation of a policy from inception date due to recently discovered facts or violation of insurance terms.