Florida Auto Insurance Insurance Glossary

A

Accident Forgiveness: Accident forgiveness refers to the exemption of the surcharge to a premium. People who have not had an at-fault accident for a period of more than five years are entitled to accident forgiveness.

Automobile Insurance Exclusions: Automobile Insurance Exclusions: The term exclusion refers to certain clauses that are not included in the insurance policy. The insurance company does not compensate for exclusions.

Automobile Insurance Fraud: Automobile insurance fraud is a way by which an individual or an insurance provider claims more money than they are entitled to receive. Automobile insurance fraud may include deliberately staging a car accident or a claiming for high amounts than the actual loss suffered.

Automobile Insurance Premium Discounts:Automobile insurance is a necessity for all automobile owners. The automobile insurance gives owners a cushion to deal with the losses in case of any accident or mishap.

B

Florida Auto Insurance Quotes | Define: Cheap Online Auto Insurance in Florida

Basic Auto Policy: Basic auto policy has now been replaced by Personal Auto Policy in which there is a combination of both, liability insurance as well as physical damage coverage for the claims that are initiated because of the use or ownership of a vehicle. These days the basic auto policy is still used to insure two-wheel motorized vehicles, and commercial autos.

Binder: A Binder refers to a temporary insurance contract in which until the receipt of the permanent policy from the company you will be provided with the coverage proof. However, a binder is subjected to pay the premium for the auto insurance policy.

C

Certificate of Financial Responsibility: The Certificate of Financial Responsibility (CFR), also known as the SR-22, is a kind of document.

Combined Single Limit: Combined Single Limit (CSL) refers to the maximum amount that an insurance company is required to pay for the damages arising out of a single accident.

D

Declaration Page: A declaration page of an auto insurance policy provides a summary of the insurance policy. It is also referred to as the "Dec" page. It acts as a quick guide to provide you all the basic information you need to know about your auto insurance policy.

Defensive Driver Discount: Defensive Driver Discount is offered to drivers who have successfully completed the defensive driver course. The Department of Motor Vehicles (DMV) offers and approves this course to hone driving skills.

E

Economic Loss: Economic loss refers to sum of all the expenses that have incurred at the time of the collision. This definition of the economic loss is from the perspective of the insurer.

F

Family Automobile Policy: Family automobile policy is an umbrella term for an auto insurance policy that provides coverage to all members in your family.

Financial Ratings: Financial ratings provide an idea about the financial health of an insurance company. When planning to buy an insurance policy, the financial strength of the insurance company is one of the most important factors to consider.

G

GAP Insurance: FGAP or Guaranteed Auto Protection insurance is an optional type of insurance policy that offers protection against financial liability for people who have bought a vehicle on loan and the actual cash value (ACV) or the market value of the vehicle is less than the amount owed on the loan.

Guarantee funds: The insurance guarantee funds can safeguard the interests of the insured person against insurance companies that are financially weak.

H

Hit and Run: Hit and run refers to a situation wherein the driver, after committing an accident, flees the spot and doesn't provide the information about his or her insurance.

Homeowner's insurance: Homeowner's insurance refers to the process of protecting the homeowner from any kind of losses incurred to his or her home, injury to others due to the liability of the homeowner.

I

Indemnification: The word indemnify refers to the security against a damage or a loss or. It also means to compensate for a loss or damage or a hurt. When it comes to a car insurance policy.

Insurance Score: Everybody is familiar with the credit score. However, not all are familiar with the insurance score. Insurance score is something.

J

Joint Underwriting Association/JUA: The Joint Underwriting Association or the JUA refers to the term when many insurance companies come together to give coverage to a large risk or exposure.

L

Lapse in coverage: Lapse in coverage refers to a point of time when the policy is terminated or cancelled due to the failure of the payment of a premium to the insurer.

Liability Adjustor: Liability Adjustor is a person who carries out the investigation, on behalf of the insurance company, in an event of accident. Primary responsibilities of a liability adjustor include:

M

Material misrepresentation: Auto Insurance is a legal contract between two parties- the insurance company and the car owner. The contract is signed with a good faith assuming that both parties are honest and have provided the right information that was asked for.

Motor Vehicle Record (MVR): The Motor vehicle record is a kind of report from a motor vehicle agency, which performs various tasks such as issuing of license, listing the violations and accidents.

N

No-fault insurance: No-fault insurance means a medical coverage in your automobile insurance which you need to have according to the state law.

Non-Owned Auto: The general auto insurance policy doesn't provide coverage for rented or non-owned vehicles. When you rent a car, you need to ensure you have sufficient insurance coverage to protect yourself from unforeseen mishaps that may occur while you are driving.

O

Occasional Driver:The definition of an occasional driver is subtle, can vary from state to state, and can depend on the insurance company.

P

Personal Auto Policy: The Personal Auto Policy (PAP) is the most common types of auto insurance policy under which the insured is covered for physical damage.

Personal Injury Protection: Personal injury protection, popularly known as PIP auto insurance policy, is an extension of a regular car insurance policy.

Q

Quote: A quote refers to a statement stating the information concerning the charges of the premium to be paid for the insurance coverage.

R

Re-inspection: Re-inspection refers to the process of examining a car after it is damaged in an accident. When an automobile is damaged in an accident the repair or body shop estimates the value of the damage and the cost required to fix the car.

Reinstatement: Reinstatement refers to process whereas a lapsed policy (for any reason such as non-payment of premium) is restored to full force and effect.

S

SR-22: An SR-22 (CFR) Certificate: SR 22, also referred to as Certificate of Financial Responsibility or CFR, is a kind of certificate, which is mandated by the state and is provided to you by your car insurance company.

Stacking of limits: When an individual is insured with multiple policies, over multiple policy periods, and suffers a loss, which caused a certain amount of damage over two or more than two policy periods.

T

Threshold Level: As per some of the no-fault insurance laws, threshold level refers to the degree of injury which the claimant must establish before he/she is allowed to sue a party for negligence.

Tort: Tort refers to any act that is wrong or that can cause harm to a person against whom it is committed. Such acts can lead to legal liability.

U

Underinsured: All states in the US require the insurance policy holders to hold a policy for a particular amount for all types of insurance including automobile insurance.

Usage: Usage is the term used to describe the main function of the vehicle for which you are seeking insurance coverage. There are different terms of usage.

V

Vehicle Identification Number (VIN): Vehicle Identification Number, also known as VIN is a unique serial number (consisting of numerals and alphabets) used by the automobile industry.

Void: A contract is said to be void when it becomes free from all legal effects. It is also known as an inherently void contract. If a contract is void, it cannot be accepted in a court of law.

W

Waiver of Deductible Collision: Waiver of deductible collision is a clause that cancels the payment of the collision deductible by the insured person.

Whole Dollar Premium: Whole Dollar Premium refers to general practice followed by insurance companies where the insurance premiums are rounded off to nearest higher or lower dollar.

 

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