| Actual cash value (ACV) |
| The market value of your car. |
Adjuster |
| A representative of an insurance company whose job is to determine and "adjust" the amount of a loss and decide how much the company will pay for it. |
Binder |
| An acknowledgment that the insurance for which you applied is in force, whether or not you have paid for it or received a policy. |
Cancellation |
| If you don't pay your premiums, an insurance company can cancel your personal auto policy by giving 10 days' written notice. The company is required to give you 30 days' written notice if it is
canceling your policy for any other reason. |
Collision coverage |
| This coverage pays for physical damage caused when your car collides with another car or object or if it overturns. |
Comprehensive coverage |
| This coverage pays for damage to your vehicle not covered by collision coverage, such as fire, theft, or vandalism. |
Deductible |
| The deductible is the amount you agree to pay on each loss before your insurance company pays. Generally, the larger your deductible, the smaller your premium. |
Liability coverage |
| This coverage pays for losses to other people and their property caused by negligence on your part. |
Preferred risk |
| A person less likely than the average person to make a claim. A preferred risk usually qualifies for a lower premium. |
Proof of loss: |
| An estimate of damages you provide to an insurance company to support your claim. Insurance companies often use this document to figure how much they will pay. |
Underinsured motorist coverage (UIM): |
Coverage that applies in the following cases:
- Bodily injury resulted from the negligence of another person.
- Bodily injury damages exceed the bodily injury liability limits of the negligent person.
- The uninsured/underinsured limits are higher than the bodily injury limits of the negligent person
|
Uninsured motorist bodily injury coverage (UMBI): |
| Coverage for bodily injury to you and your passengers caused by an uninsured driver. |
Uninsured motorist property damage coverage (UMPD): |
| Coverage for damage to your auto caused by an uninsured driver, "phantom vehicle," or a hit-and-run driver. |
