Individual who sells and services insurance policies in either of two classifications:
Independent agent represents at least two insurance companies and (at least in theory) services clients by searching the market for the most advantageous price for the most coverage. The agent's commission is a percentage of each premium paid and includes a fee for servicing the insured's policy.
Direct or career agent represents only one company and sells only its policies. This agent is paid on a commission basis in much the same manner as the independent agent.
Financial protection in case you harm someone else or their property as a result of a vehicle accident in which you are at fault. Most states require drivers select a certain amount of liability coverage for repairs (property damage) and medical expenses (bodily injury), although some exclusions may apply.
Your insurance policy will pay for the costs related to the injuries to the other person –or people- involved, resulting from a car accident in which you are found legally responsible. These costs usually cover medical bills, pain and suffering, funeral expenses, and legal fees in case you are sued for damages.
Optional coverage that protects your car when it is involved in a collision with another vehicle or a stationary object, like a guardrail, a brick wall, or a tree. It will pay the repair or replacement of your vehicle only, since liability Insurance takes care of damages of other people’s property.
Also referred to as “information pages”, declarations are those pages of your insurance policy where details such as who is insured, the amount of coverage, the location of the item or items being covered, etc. are all outlined.
The initial report you make to let your insurer know of an event resulting in a loss, theft, or damage of your insured property. First Notice of Loss (FNOL) is normally the first step in the claims process.
The percentage amount of the premium you get back, upon cancellation prior to the policy expiration date. A return premium could also be made for an overpayment of your premium or an adjustment to the rate.
To prevent early cancellations, insurers may retain a greater percentage of the unearned premium than if it was distributed proportionately throughout your coverage term. In other words, the premium is not divided out evenly among the days you were covered, but owed at the beginning of the policy term.