Car Insurance Glossary
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Hit & Run
An accident caused by a person that flees the scene.
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ID Card
An id card issued by your insurance provider that
provided proof of liability insurance.
Installment Fee
This is a fee that is charged if you decide
to spread your payments out over time.
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Lender
The lender is an entity that lends out money.
Lessor
The lessor is an entity that leases out a vehicle
or piece of equipment.
Liability Insurance
A coverage that covers your financial responsibilities
incase you involved in an accident where
it has been found that you are at fault.
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Medical Payments Coverage
Coverage often called PIP or personal injury protection
that covers cost to personal injury to you, family
or passengers.
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Named Driver Exclusion
A person specifically identified to be excluded
from the current policy. This is often for a
family member whose inclusion would raise the
premium considerably.
No Fault Insurance
No fault Insurance is a policy that covers
medical cost regardless who is a fault in
an accident.
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Per Occurrence Limit
This refers to the cap amount that an insurance
company will cover in a single accident.
Per Person Limit
This refers to the number of people that the
insurance company will cover in a single
accident.
Personal Auto Policy (PAP)
PAP is the most common type of insurance policy
that auto insurance companies sell. Personal
Auto Policy includes liability, medical,
medical damage protection coverage, etc.
Premium
The cost of an insurance policy and other included
coverage.
Pro Rate Cancellation
This is what happens when you cancel your policy
before the term has expired.
Property Damage Liability
Property damage liability covers any property
loss or damaged in an accident.
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Term
The specified period of time the policy is in effect.
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Uninsured Motorist Bodily Injury
This refers to the coverage that protects covers
cost of medical or physical damages as a result
of a hit and run accident.
Underinsured Motorist Bodily Injury
Very similar to uninsured motorist except it
covers costs of medical or physical damages
as a result of an underinsured motorist.
Underwriting
It is the process used by insurance companies
to determine the risk involved in insuring
a client. Underwriting is used to determine
the appropriate premiums for a client.
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