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Accidental Death
Accidental death
coverage is sometimes a part of Personal Injury Protection
or First Party Benefits plans.
If a covered individual
dies from accident-related injuries, this coverage provides a payment
to the insured's designated beneficiary.
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Actual Cash Value
The current value of property,
which is the cost to replace that property less the amount it would
have depreciated since the original purchase date.
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Adjuster
An adjuster is the
person who investigates and settles claims on behalf of the insurance
company.
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Agent/Broker
Agents and brokers both sell
and manage insurance for clients. Agents are the authorized representatives
of an insurance company or companies, while brokers are the authorized
representatives of parties seeking insurance.
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Anti-Theft Recovery
System
This system consists
of an electronic device that is installed in a concealed area of your
car. If your car is stolen, you can activate the device and it will
emit a signal that police cruisers equipped with appropriate sensing
equipment can use to locate your vehicle.
The system can be
effective over a radius of several miles, depending on local geography.
Ask your car dealer or nearby police department which brand of recovery
systems are supported in your area.
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Benefit
A benefit is the amount paid
by an insurance company to you or your beneficiary when you file a claim.
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Bodily Injury Liability Coverage
Bodily injury liability coverage
protects you if you are held responsible for injuring someone else in
an auto accident.
This coverage helps pay for
the injured party's medical expenses and lost wages. Bodily injury liability
also helps pay your expenses in a related lawsuit.
The amount paid by bodily injury
liability coverage is capped at the limit you purchase.
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Broadform Collision
Coverage
This coverage is
available only in the state of Michigan.
Broadform works
like standard collision coverage, but also pays for collision damage
to your insured auto regardless of who is at fault.
Although the coverage
will pay up to the car's actual cash value regardless
of fault in an accident, you will be responsible for the deductible
amount you select if you are found to be more than 50 percent responsible
for the accident. If you are less than 50 percent responsible, you will
not have to pay this deductible.
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Business Use
This means that
you use your car for business purposes such as sales, service, or delivery
calls, work-related errands (such as trips to the bank or post office),
and other work-related driving. Commuting to and from work is not considered
business use.
Esurance does not
currently provide insurance for vehicles driven primarily for business
use.
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Claim
A claim is a policyholder's
request for reimbursement of a loss that is covered by the their insurance.
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Collision Coverage
Collision coverage helps pay
for auto repair or replacement costs if your car hits another vehicle/an
object or if your car rolls over.
The maximum amount paid for
repair or replacement is the car's actual cash value,
less the amount of the deductible you select.
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Collision Deductible Waiver
This coverage pays the deductible
for your collision coverage if you are involved in
an accident in which an uninsured motorist is held legally responsible
for the accident.
The collision deductible waiver
is not available in all states Where available, this coverage must be
purchased in conjunction with collision coverage.
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Commuting
If you primarily
use your car for commuting, this means that you are typically driving
it to and from work or school on a regular basis.
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Comprehensive Coverage
Comprehensive coverage helps
pay for damage to your car resulting from fire, certain natural disasters,
falling objects, and vandalism. Theft is also covered.
The maximum amount paid for
repair or replacement is the car's actual cash value, less the amount
of a deductible you select.
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Continuously Insured
The length of time you have
been continuously insured is the number of years you have been covered
by one or more insurance companies without any lapse in coverage.
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Declarations
The declarations page shows
the factual information essential to the insurance contract: the policyholder's
name and address, a description of the insured property, the premiums
to be paid, as well as the limits and deductibles for different coverages.
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Deductible
For some insurance coverages,
you are asked to choose a deductible. The deductible is the portion
of losses that you agree to pay in the event of an accident.
Though choosing a higher deductible
can substantially lower your insurance premium, if an accident occurs,
you must pay the full, pre-established amount of the deductible in order
to receive payment from your insurance provider.
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Defensive Driver
and Driver Improvement Courses
These courses consist
of defensive driving training for drivers of all ages as well as "mature
driver safety courses" intended for drivers age 55 and over.
You may qualify
for a discount on your insurance premium if you have completed such
courses.
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Depreciation
Depreciation is the decline
in an object's value due to age, wear and tear, or obsolescence.
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Effective Date
The effective date is the date
your insurance coverage begins. You are not covered prior to a policy's
effective date.
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Emergency Road Service
This optional coverage pays
a fixed amount toward vehicle towing if your car breaks down or if it
is disabled in an accident.
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Endorsements
Also known as riders, endorsements
are changes to the original insurance contract, such as a different
deductible or an additional car or driver.
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Exclusions
Exclusions are situations that
are not covered by a given insurance policy. Specific exclusions are
listed on your insurance policy.
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Extraordinary Medical
Extraordinary medical
coverage is sometimes a part of Personal Injury Protection or First
Party Benefits plans.
Extraordinary medical
coverage protects you in the event you suffer accident-related injuries
that require serious and/or long-term medical care. Extraordinary medical
coverage begins once you have exhausted the limit on your standard medical
benefits coverage.
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First Party Benefits
First Party Benefits,
or FPB, is an optional set of coverages available in Pennsylvania.
Depending on the
specific FPB coverages you select, if you are injured in an accident,
FPB covers you and relatives residing in the same household for medical
expenses, lost income, accidental death, and/or funeral costs.
Payments for losses
are capped by limits that vary for each coverage you purchase.
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Full Coverage
Full coverage denotes an insurance
policy containing all coverage legally required in a given state. It
does not imply the policyholder will always be fully covered.
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Funeral Benefits
Funeral benefits
coverage is sometimes a part of Personal Injury Protection or First
Party Benefits plans. If a covered individual dies from accident-related
injuries, this coverage pays for a portion of funeral expenses.
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Garaging Location
The garaging location is where
an insured vehicle is primarily parked. This location is usually the
ZIP code of the policyholder's primary residence.
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Income Loss
Income Loss coverage
is sometimes a part of Personal Injury Protection or First Party Benefits
plans.
Income loss coverage
protects you if you are unable to work due to accident-related injuries.
It helps you recover portions of your lost salary and other expenses
you may incur as you try to return to work.
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Indemnity
An indemnity is
a pre-determined sum paid for a covered loss.
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Insurance Claim Report
Insurance claim reports provide details
about claims you or other insured drivers have filed with insurance companies.
These reports are provided by independent consumer reporting agencies that collect
claim information from a variety of insurance companies. One of the most common
agencies issuing such reports is C.L.U.E., the Comprehensive Loss Underwriting
Exchange.
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Insurance Score
Insurance scores are based on analytical
models that objectively measure the relative likelihood of future insurance losses
based on your credit history. These scores and analyses of their significance are
provided by independent consumer reporting agencies.
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Insured
The insured is an individual
covered by a given insurance policy.
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Liability
Liability is a term
that broadly means legal responsibility. If you run a stop sign and
hit another car, you may be found liable for the damages to the other
driver's auto.
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Liability Coverage
Liability coverage protects
you from having to deplete your assets to pay for damages if you are
held responsible for injuries or damages arising from an auto accident.
The two main types of liability
coverages in an auto insurance policy are bodily injury and property
damage.
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Limits
Limits are the maximum amount
an insurance company will pay for a covered loss. While you can choose
the limits you want to purchase for certain coverages, some states require
you to buy limits no lower than a certain amount.
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Medical Benefits
Medical Benefits
coverage is sometimes a part of Personal Injury Protection or First
Party Benefits plans.
Medical expenses
that are the direct result of accident-related injuries are covered.
Covered medical expenses are limited to the amounts you specify.
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Medical Payments
Coverage
This coverage pays
medical bills and/or funeral expenses if a covered driver and/or accompanying
passengers are injured or killed while in an insured vehicle, regardless
of fault in an accident.
This may also cover
policyholders and their family members when in others' vehicles, or
when policyholders and their family members are on foot and hit by a
car.
The amount paid
by medical payments coverage is capped at the limit you select.
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Motor Vehicle Report
A Motor Vehicle Report (MVR) provides
information on your driving record. This report includes accidents and moving violations.
Insurance carriers obtain MVRs from states where you or other insured drivers have been licensed to drive.
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National Credit File
The National Credit File provides objective
consumer information regarding the financial history of an individual. Information contained in this
report is often used to calculate insurance scores.
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No-Fault Insurance
No-fault insurance
refers to the way insurance companies settle claims. Generally, a no-fault
policy will not require that blame be assigned in order for a policyholder
to be paid.
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No-Fault States
In some states,
called no-fault states, insurance companies are legally required to
pay a policyholder's covered losses, regardless of who is at fault in
an accident. Some no-fault states also restrict the right to sue for
damages.
In states without
no-fault regulations, the insurance company covering the person who
caused an accident is forced to pay for covered losses.
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Non-Passive Alarm
A non-passive alarm
must be manually activated every time you leave the car. If someone
attempts to open your car, the alarm sounds, and the system disables
the automobile's starter, ignition system, and/or fuel circuit.
You may qualify
for a discount on your insurance premium if your car is equipped with
such an alarm.
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Occasional Driver
An occasional driver is a driver
who is not the most frequent driver of the insured vehicle.
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Passive Alarm
Passive alarms are
automatically activated and will emit a warning sound when someone attempts
to open your car. Once the passive alarm has been triggered, the system
disables the automobile's starter, ignition system, and/or fuel circuit.
You may receive
a discount on your insurance premium if your car is fitted with such
an alarm.
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Personal Injury Protection
Personal Injury
Protection, or PIP, is a set of coverages available only in certain
states, where it is often mandatory.
PIP generally includes
expanded coverage of medical costs and, in some states, PIP also pays
for lost wages and similar losses.
Specific protections
afforded by this coverage and limits on PIP payments vary widely from
state to state.
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Pleasure Use
If you use your
car for pleasure, this means that you are typically driving for fun,
with no regular commuting or business use.
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Policy Expiration Date
The policy expiration date is
the date coverage under a current insurance policy ends if the policy
is not renewed. The expiration date can be found on the declarations
page of a policy, on a proof of insurance card, or on a recent renewal
notice.
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Policy Term
A policy term is the length
of time an insurance policy is valid.
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Primary Driver
The primary driver
is the person who drives the car most frequently.
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Primary Use
A vehicle's primary use is
how the vehicle is typically used. This use may be characterized as
commuting, business use, or pleasure use.
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Primary Policyholder
The primary policyholder is the person who serves as the main point of contact with Esurance.
Since he/she is the main point of contact, the primary policyholder has to provide us with an
email address so that we can send account updates, renewal notices, and other important communication.
Typically, the primary policyholder is also the person billed for the Esurance policy, though any person listed on
the policy can make the premium payment
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Property Damage
Liability Coverage
Property damage
liability coverage protects you if you are held responsible for damaging
someone else's property in an auto accident.
Property damage
coverage helps you reimburse another person for their damaged property
(such as a car, a fence, or a home). This coverage also helps pay your
expenses in a related lawsuit.
The amount paid
by property damage liability coverage is capped at the limit you select.
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Rental Car Reimbursement
Rental car reimbursement is
an optional coverage that helps pay your rental car expenses if an insured
vehicle is damaged or stolen and you require a rental car.
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SR-22
An SR-22 is a document that
shows proof of financial responsibility. Courts may require an SR-22
for people convicted of certain traffic violations.
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Secondary Driver
A secondary driver
is a driver who is insured for driving a covered vehicle, but is not
the primary driver. A secondary driver is also sometimes known as an
occasional driver.
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Steering Restraint
A steering restraint
is a durable collar or shield fitted to the upper and lower casing of
your car's steering column. The collar makes it more difficult for potential
thieves to access, or "hotwire" your car's ignition system.
You may qualify
for a discount on your insurance premium if your car is fitted with
a steering restraint.
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Tort
Tort is a legal
term used to describe instances when someone is deemed legally responsible
for injuring another person or damaging his/her property.
Some states ask
you to select a tort provision. In these states, you can limit your
right to sue for non-monetary damages (like pain and suffering) in exchange
for a reduction to your premium.
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Towing Coverage
This optional coverage
pays a fixed amount toward vehicle towing if your car breaks down or
if it is disabled in an accident.
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Underinsured Motorist
Bodily Injury Coverage
Underinsured motorist
bodily injury coverage is available in some states, where it may be
mandatory.
This coverage pays
for your medical expenses, lost wages, and other damages when you or
your passengers are injured in an accident caused by a driver who has
insufficient insurance coverage.
This coverage typically
pays the difference between your coverage and the other driver's bodily
injury coverage. The amount paid by underinsured motorist bodily injury
coverage is capped at the limit you select.
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Underinsured Motorist
Property Damage Coverage
Underinsured motorist
property damage coverage is available in some states, where it may be
mandatory.
This coverage protects
you if your vehicle is damaged in an accident caused by a driver who
has insufficient insurance coverage. Other specific protection afforded
by this coverage varies from state to state.
This coverage pays
the difference between the coverage limit you select and the other driver's
property damage coverage limit. The amount paid by underinsured motorist
property damage coverage is capped at the limit you select.
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Uninsured Motorist
Bodily Injury Coverage
Uninsured motorist
bodily injury coverage is available in some states, where it may be
mandatory.
This coverage pays
for your medical expenses, lost wages, and other general damages when
you or your passengers are injured in an accident caused by a driver
who has no insurance. Uninsured motorist coverage also pays for injuries
sustained in hit-and-run accidents.
The amount paid
by uninsured motorist bodily injury coverage is capped at the limit
you select.
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Uninsured Motorist
Property Damage Coverage
Uninsured motorist property damage
coverage is available in some states, where it may be mandatory.
This coverage protects you if your
vehicle is damaged in an accident caused by a driver who has no insurance. Other protection
afforded by this coverage varies from state to state..
The amount paid by uninsured motorist bodily
injury coverage is capped at the limit you select. In some states, you will need to pay a deductible
each time you make a claim.
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Uninsured/Underinsured
Motorist Bodily Injury Coverage
In some states,
both uninsured and underinsured motorist bodily injury are bundled into
a single coverage. In the states where it is offered, this coverage
may be mandatory.
This coverage pays
for your medical expenses, lost wages, and other damages when you or
your passengers are injured in an accident caused by a driver who has
insufficient or no insurance coverage. This coverage also pays for injuries
sustained in hit-and-run accidents.
The amount paid
by uninsured/underinsured motorist bodily injury coverage is capped
at the limit you select.
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VIN
The VIN, short for vehicle identification
number, is the unique 17-digit number found on every car. It contains
the vehicle's serial number, as well as abbreviations for the make,
model, and year.
The number appears on your
vehicle registration card. It is also engraved in your car, near the
base of the windshield on the driver's side dashboard and/or on the
edge of the driver's side door.
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