Car Insurance Glossary

Glossary

Accident Forgiveness - In most states, if you've been accident-free for a period of time, you may qualify for this program. Accident forgiveness means that your insurance agent won't add a surcharge to your premium after your next at-fault accident.

Actuary - A statistician who computes insurance risks and premiums. Actuaries keep YOUR INSURANCE profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.

Anti-Theft Device - A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums.

At-Fault - The party that is legally liable for the damages in an accident.

Auto Damage Adjuster - The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement.

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.

Claim - Any request or demand for payment under the terms of the insurance policy.

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.

Comprehensive Physical Damage Coverage - Pays for damage to your car from theft, vandalism, flood, fire or other covered perils. This coverage is subject to the terms, limits and conditions of your policy contract.

Deductible - The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums.

Emergency Road Service Coverage - Protection for problems that are not typically handled by your New Orleans car insurance, such as:

• being locked out of your car
• towing not related to an accident
• having a dead battery re-charged
• inflating a flat tire
• filling an empty gas tank

Good Student Discount - May be awarded to full-time students who maintain a grade average of "B" or better.

Indemnity - Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.

Limits of Liability - The amount specified in your policy up to which the insurance company will protect you.

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.

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.

Passive Restraint System - A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.

Premium - The price of the insurance policy that the insured pays in exchange for insurance coverage.

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 your policy contract.

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.

SR-22, Certificate of Financial Responsibility (CFR) - An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state's Motor Vehicle Department.

Subrogation - If your car is damaged because of another driver's negligence and you ask YOUR INSURANCE to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.

Uninsured Motorist Coverage - In some circumstances, may pay for your injuries or property damage caused by an uninsured motorist or, in some states, an unidentified driver. In some 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.