An insurance company authorized to do business in a given state and subject to regulation by that state’s Department of Insurance.

Pays medical costs of others and your legal defense costs if your car injures or kills someone. The limits or maximum the company will pay are stated on the declarations page. Typically the limit is per person and total per accident.

A broker-agent acting in the capacity of an insurance broker is an independent insurance sales person who searches the marketplace in the interest of clients, not insurance companies, and may place coverage with any admitted insurance company.

Using a private passenger vehicle owned or leased by the applicant in the course of his or her business or profession. Acceptable business use classifications vary by company.

The termination of insurance coverage during the policy period.

An unexpected and unintended event from the standpoint of you or a permissive user that causes bodily injury or property damage and arises out of the ownership, maintenance or use of a car or other motor vehicle.

A 4-wheel motor vehicle licensed for use on public roads.

A person’s request for payment by an insurer for a loss covered under a policy. Your claims to your company are first party claims. Claims made by one person against another person’s company are know as third party claims.

Optional insurance which pays (subject to a deductible) for damage to your car caused by contact with another car or object, or by rolling the car over. This coverage is usually required if you have a car loan.

Optional insurance which pays (subject to a deductible) for damage to your auto caused by incidents other than collision or rolling the car over, such as fire, theft, vandalism, flood, or hail. This coverage is usually required if you have a car loan. This coverage is sometimes referred to as Other Than Collision coverage or OTC coverage.

The cost of compensating those who suffer bodily injury or property damage from a car accident. These damages may be payable up to the limits of liability as shown on the declarations page.

The company refuses to accept the request for insurance coverage.

The amount which you agree to pay, per claim or per accident on comprehensive or collision coverage. This is subtracted from the total amount paid by your insurer. If the claim is $1500 and your deductible is $500, you pay $500 and the insurance company will pay the remaining $1000. The higher the deductible, the lower your premium will be.

A decrease in value due to age, wear and tear, etc.

Basically, it is an amendment or change to a policy that adds or subtracts insurance coverage.. (For example: A request that you make to your broker to add drivers or delete coverage results in an endorsement to your policy).

Certain causes and conditions, listed in the policy, which are not covered.

The date on which the policy ends.

An elective combination of coverages for the risks of owning a home. Can include losses due to fire, burglary, vandalism, earthquake, and other perils.

A company which, in exchange for a fee (known as a premium), agrees to pay all legitimate claims that may arise under your policy.

The policyholder – the person(s) protected in case of a loss or claim.

A promise from an insurance company to pay for damages (within the limits stated on the policy) for bodily injury or property damage for which the law holds the policyholder responsible because of an accident involving an insured car. In California, the minimum requirements are $15,000 per person, $30,000 per accident and $5,000 in property damage.

Maximum amount a policy will pay either overall or under a particular coverage.

An insurance company’s promise to pay medical expenses for your bodily injury, sickness, disease or death suffered in car accident while occupying a car or from having been struck by a motor vehicle.

The policyholder or applicant makes a false statement of any material (important) fact on their application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged or makes a false statement about the annual miles driven.

Reimbursement for towing up to specified coverage limit each time a covered auto is disabled. This coverage does not apply to towing of a covered auto due to a parking violation. Also included in motorist protection is emergency transportation. The company will reimburse an insured up to the specified coverage limit for the costs of emergency transportation from the place of a covered accident arising out of the operation, maintenance or use of a covered auto to:

1. such place as the emergency may require
2. the intended destination
3. the insured’s residence

This coverage may be issued to someone who does not own an automobile, does not lease a vehicle or have a vehicle furnished for their regular use. This policy will not provide coverage for your use of a family member’s vehicle. This insurance covers the named insured as a driver only. A non-owners policy does not provide any physical damage coverage on the car the insured is driving.

If the policy provides liability coverage and you’re traveling in a state which has mandatory motor vehicle insurance requirements the insurance company will automatically provide the minimum limits of liability as required by the applicable state law.

Coverage to pay basic expenses, in the event of an accident, for an insured and his or her family in states with NO Fault Automobile Insurance.

The written contract of insurance.

The maximum amount a policy will pay, either overall or under a particular coverage.

The amount of money an insurance company charges for insurance coverage.

A policyholder contracts with a lender to pay the insurance premium on their behalf. The policyholder agrees to repay the lender for the cost of the premium, plus additional interest and fees.

This insurance covers property damage that results from a car accident. Property damage means damage to or destruction of physical property, including the loss of use of that property. The maximum that will be paid by an insurance company for any one accident is stated on the declarations page.

An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.

The restoring of a lapsed policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest.

A salvaged vehicle is a vehicle which has been wrecked, destroyed or damaged, to such extent that the insurance company considers it uneconomical to make repairs to the vehicle and the vehicle is not repaired by or for the person who owned the vehicle when the damage occurred. The title will often note SALVAGED VEHICLE when issued by the department of motor vehicles. Many companies will only accept salvaged vehicles for liability coverage.

When the policy is terminated prior to the expiration date at the policyholder’s request. Earned premium charged would be more than the pro-rata earned premium. Generally, the return premium would be approximately 90 percent of the pro-rata return premium. However, the company may also establish its own short-rate schedule.

An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents, moving violations or a sports type vehicle.

This is optional coverage that pays on a reimbursement basis for towing or a rental car in the event of a covered claim. The reimbursement is subject to the limits as stated on the policy.

Any delivery use including pizza, fast food and newspaper is unacceptable. Any vehicle used to carry equipment, deliver supplies or transport people for a fee is unacceptable. Examples of unacceptable business use would be buses, livery, carpenters, electricians, gardeners, plumbers and vehicles in a business name. For more specific questions regarding what is acceptable or unacceptable business use contact your YouZoom Network broker for further assistance.

The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of risks that do not fit within the guidelines of the company.

If you have an accident with an uninsured driver, this coverage will pay for direct loss or damage to your car described under the policy, subject to the limits stated on the policy.

This is a coverage under which your insurance company will pay you for damages you’re legally entitled to receive from the owner or operator of an uninsured or underinsured motor vehicle because of bodily injury in a covered claim.