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Auto Insurance Glossary
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41. Insurer
The party to the insurance contract who agrees to pay for losses or benefits. Additionally, any corporation primarily engaged in the business of furnishing insurance to the public.
42. Judgment
The final decision handed down by a court of law. As an example: in a lawsuit related to an auto accident where Jim hit Stacy's fence, the court determined that Jim was wholly responsible for the accident. The judgment determined that Jim should pay for the costs of repairing Stacy's fence.
43. Liability
A term used to indicate legal responsibility in a broad sense. For example: Should you run a red traffic light and hit another car, you could be found liable for the damage to the other driver's car.
44. Liability Coverage
This coverage protects you from depleting your assets to pay for damages should you be held responsible for injuries or damages due to an auto accident. Two primary kinds of liability coverage in a car insurance policy include: bodily injury and property damage.
45. Limits
The maximum amount an insurance company will pay for a covered loss. Though you can select your limits for particular coverages, some states mandate that you buy certain levels of coverage. In these states, you must select limits which at a minimum meet your state's vehicle insurance requirements.
46. Medical Benefits
This coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. Medical expenses that are the direct result of accident-related injuries are covered. Covered medical expenses are capped at the limits you choose when you purchase your car insurance policy.
47. Medical Coverage
Covers the medical costs of any passengers in your automobile, or your own medical costs if you're operating a vehicle other than your own. May also include funeral costs.
48. Medical Payments
Coverage for medical and funeral expenses due to an accident regardless of fault. Medical Payments coverage also covers injuries to passengers in your car (or another's car you are driving with permission), in addition to injuries sustained in a car accident by yourself or a family members when in others' vehicles, or even when policyholders and their family members are on foot and hit by a car. The amount paid by medical payments coverage is capped at the limit you seelxted when you purchase your insurance policy.
49. Motor Vehicle Report
Provides information about your driving record including accidents and moving violations. Auto insurance carriers obtain MVRs from states where you or other insured drivers have been licensed to drive.
50. National Credit File
Provides objective consumer information relating to the financial history of someone. Data contained in this report is frequently used to determine insurance scores.
