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Please select the first letter of the term you would like to know more about.
Actual Cash Value - The fair market value of property; technically, replacement cost less depreciation. Agreed Price - The price or cost of repairs agreed to by the AD (auto damage) adjuster or independent appraiser and the body shop representative. At-Fault - The party that is legally liable for the damages in an accident. Binder - A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately. Bodily Injury - An injury sustained by a person. Bodily Injury Liability Coverage - Pays damages for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract. CLUE Report - Comprehensive Loss Underwriting Exchange (CLUE) report; provides claim history information. Collision Coverage - Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. This coverage is subject to the terms, limits and conditions of your policy contract. Declarations - The part of your policy that includes your name and address; the property or autos that are being insured, its location and description; the policy period; the amount of insurance coverage and the application premiums. Deductible - The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums. Endorsement - An addition to the basic policy contract. An endorsement adds to the policy contract; an amendment alters it. Expiration Date - This date, found on your declarations page, indicates when your policy coverage runs out. Your renewal policy will start on this date. Good Student Discount - Some companies offer this to students who maintain a "B" or better grade average. Indemnification - The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss. Insurance Score - Used in the underwriting process in same states. An individual's insurance score is frequently based, in part, on a person's credit history. Liability - Any legally enforceable obligation or responsibility for the injury or damage suffered by another person. Limits of liability - The amount specified in your policy up to which the insurance company will protect you. Loss - Any measurable dollar cost of damage and/or injury suffered by a person. Loss of Use - Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage. Medical Payments Coverage - Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract. Michigan Catastophic Claims Association (MCCA) - A non-government group put together to raise money for Michigan residents whose bills resulting from an auto accident are over $500,000. The association will then pay all bills over $500,000 as a result of the accident. Each policy holder, no matter what company they are with, is assessed a fee per vehicle to go towards the MCCA. Multi Car Discount - Available to policy holders who insure more than one vehicle at the same location. Named Insured - The person or entity listed on the policy declarations page. No-fault Insurance - May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states. Non-Renewal - When an insurer decides not to renew a policy at the end of its policy period. Occurrence - An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period. Peril - A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire. Personal Injury Protection - May pay for your medical treatment, lost wages, or tother accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states. Personal Property - Property that is not land or connected to land (real estate), such as furniture or jewelry. Physical Damage - Damage to property. Policy - A contract between you and the insurance company. Policyholder - The person or entity listed on the policy declarations page. Premium - The price of the insurance policy that the insured pays in exchange for insurance coverage. Proof of loss - A statement made regarding the extent of the claim: it may be requested in accordance with the conditions of the policy. Property Damage Liability Coverage - Pays for damage to someone else's property resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of you policy contract. Quote - A statement of the premium that will be charged for insurance coverages based on specific information provided by the person requesting the quote including drivers, vehicles, and driving record. Rate - Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium. Rental Reimbursement - Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium. Renewal Date - The date that your insurance policy expires and the date that your renewed policy will begin. Subrogation - If your car is damaged because of another driver's negligence and you ask your insurance company to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. The process of payment recovery is called subrogation. Umbrella Insurance - Provides high limits of additional liability coverage above the limits of your homeowners and auto policy. In addition, it provides coverage that may be excluded by other liability policies. Underwriting - The process an insurer goes through to determine whether of not it will provide coverage for an applicant. Un/Under-Insured Motorist Coverage - In some circumstances, may pay for your injuries or property damage caused by an uninsured motorist or, in some cases, an unidentified driver. In same cases it also includes coverage for underinsured motorists and at-fault drivers with insufficient insurance to pay your claim. This coverage is subject to the terms, limits and conditions of your policy contract. Vehicle Identification Number (VIN) - A 17 digit number assigned to each vehicle manufactured in the United States after 1980. This number is used for identification purposes and is visible on the dashboard when viewed form the outside of the vehicle.
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