Insurance Basics: Automobile

Assigned Risk Pool

consists of people who cannot obtain an insurance policy from regular carriers due to poor driving record or other factors

Extended Warranty

extension of the overage period on an item in which the manufacturer guarantees to repair or replace if necessary within a specific time period

Insurance Company

financial institution agreeing to compensate for losses of individuals or businesses resulting from damages, injury, treatment or hardship

Medical Payments Coverage

insurance which applies to the medical expenses of anyone who is injured in policyholder's automobile, no matter who was at fault for the accident

Property Damage Liability

insurance which applies when the policyholder damages the property of another person

Uninsured Motorist Protection

insurance which covers costs if an individual is involved in a car accident with an uninsured driver

Collision Insurance

insurance which covers damage to the policy holder's car when it is involved in an accident

Comprehensive Insurance

insurance which covers physical damage to an individual's car which occurs as a result of a non-collision incident

Bodily Injury Liability

insurance which covers physical injuries to others caused by an automobile accident for which the policyholder was responsible

Automobile Insurance

insurance which reduces the financial impact of an automobile accident

Rating Territory

residential location used to determine the automobile insurance premium

Vehicle Type

year, make and model of a vehicle