Rental reimbursement coverage pays for a rental vehicle (usually up to $20 a day) when the insured's vehicle is out of commission as a result of a loss covered under comprehensive or collision coverages.
Accident Forgiveness
In most states, customers who have not had an at-fault accident in the previous five years qualify for this program. Accident forgiveness means that won't add a surcharge to your premium after your next at-fault accident.
Actual Cash Value
The fair market value of property; technically, replacement cost less depreciation.
Actuary
A statistician who computes insurance risks and premiums. Actuaries keep profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.
Adjuster
See Claim Adjuster.
Adverse Carrier
Term used to refer to the other party’s insurance company.
Agent
An individual who acts as a representative for the company and sells insurance, usually on a commission basis. This individual could be an "exclusive" or "non-exclusive agent."
Agreed Price
The price or cost of repairs agreed to by the AD (auto damage) adjuster or independent appraiser and the body shop representative.
After-Market Parts
See "Competitive Auto Repair Parts."
Amendment
A change to the basic policy contract. An amendment alters the policy; an endorsement adds to it.
American International Underwriters
offers overseas insurance from American International Underwriters through ’s International Insurance Underwriters agency.
Anti-lock Braking System (ABS)
A computer-controlled high pressure system that assists the vehicle’s normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.
Anti-Theft Device
A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums.
Appraisal
Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.
Arbitration
A process of settling a dispute through an impartial party. It is used as an alternative to litigation.
Assigned Risk (AIP)
A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners.
Assured
Means the same as an "insured," "policyholder," or someone who has an insurance policy.
At-Fault
The party that is legally liable for the damages in an accident.
Auto Damage (AD)
Division of the claims department that handles auto claims.
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.
Auto Insurance
Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured’s property and losses for which the insured is liable as a result of owning or operating an auto.
Auto Repair Xpress SM
program that maximizes convenience. It allows you to complete your vehicle's repair process at one location. claims adjusters are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through Enterprise Rent-A-Car. All work is guaranteed by for as long as you own the vehicle.
Auto Theft
The theft of an auto is a type of loss that is covered under comprehensive coverage.
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Berkshire Hathaway
The parent company of . Other companies in the Berkshire Hathaway group are listed at the Berkshire-Hathaway website.
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.
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Cancellation
Termination of an insurance contract before the end of the policy period, by the insured or insurer.
Carrier
The insurance company or insurer.
Catastrophe
A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.
Certificate of Satisfaction
A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.
Claim
Any request or demand for payment under the terms of the insurance policy.
Claimant
Individual or entity presenting a claim.
Claim Adjuster
A person responsible for investigating and settling a claim.
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.
Comparative Negligence
A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when they are partially at fault, or negligent. Each party's negligence is compared to the other's and a claimant's recovery can be reduced by the percentage of his or her own negligence.
Competitive Auto Repair Parts
Parts made by a company other than the manufacturer of the auto. All parts we authorize meet or exceed the quality of the manufacturer's parts, but cost less. guarantees these parts for as long as you own the car.
Competitive Estimate
A term used when an insurance company requests that you submit multiple repair estimates for consideration.
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.
Condition
The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.
Condo Insurance
A type of homeowners insurance that meets the special needs of condominium owners.
Contributory Negligence
A doctrine of law that, in some states, may prevent claimants from recovering any portion of their damages if they are even partially at fault, or negligent.
Coverage
Protection and benefits provided in an insurance contract.
Customized Vehicle
A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.
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Damage
Loss or harm to a person or property.
Damages
Money that one party becomes legally obligated to pay to another party.
Declarations
The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.
Deductible
The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums.
Defensive Driver Discount
Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums.
Depreciation
The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.
Direct Check
Direct Check is ’s electronic payment method that lets you to pay your premium online with an electronic check.
Direct Pay
Direct Pay is ’s electronic payment method that lets you pay your premiums with automatic deductions from your checking account.
Discount
A reduction in your premium if you or your car meet certain conditions that are likely to reduce the insurer’s losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.
Driver Training Discount
A discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.
Drive-In
A office staffed with employees where insureds and claimants bring their vehicles for damage inspections and estimates.
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eBill
An electronic version of your bill that you can review online. Everyone who has registered to use ’s Policyholder Service Center can choose to receive eBills.
Emergency Road Service Coverage
Protection for problems that are not typically handled by your auto 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.
Endorsement
An addition to the basic policy contract. An endorsement adds to the policy contract; an amendment alters it.
ePolicy
’s electronic system that allows you to review your policy documents online.
Estimate
An assessment of the cost to repair your damaged property.
Exclusion
Restriction in your insurance policy that limits and may exclude coverage for certain perils, persons, property, or locations.
Expiration Date
This date, found on your declarations page, indicates when your policy coverage runs out. Your renewal policy will start on this date.
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Field Adjuster
An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene investigations, and damage inspections.
Financed Car
A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.
First Party
Term used to refer to an insured.
First Party Claims
A claim for damage, loss or injury made by an insured.
Forms
Two types of forms are important in insurance: 1. pre-printed contracts that comprise your insurance policy, 2. questionnaires or coverage selection forms that a policyholder is required to fill out.