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Who pays my company car insurance

Accident: A sudden, fortuitous event or an unexpected, unforeseen event, not under the control of an insured and resulting in a loss. Often used to refer to a collision or insurance event. See What to do after a car accident

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 some insurance carriers won't add a surcharge to your premium after your next at-fault accident. See Accident forgiveness: What's the catch?

Accident Frequency: The number of times an accident occurs. Used by actuaries (see definition below) to predict losses and appropriately base premiums.

Accidental Death Benefit (ADB): A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident.

Act of God: Natural occurrence beyond human control or influence. Such acts of nature include hurricanes, earthquakes, and floods. See Acts of God and your car insurance

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 insurance carriers profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.

Additional Insured or Additional Interest: A person or an organization, other than the named insured or covered person, who is protected under the named insured's auto policy.

Adjuster: See Claim Adjuster.

Admitted Company: An insurance company authorized to do business in the state.

Adverse Carrier: Term used to refer to the other party's insurance company.

Adverse Selection: The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk.

Aftermarket Parts: Parts or accessories that are not a part of the original factory installed parts.

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 Auto Damage adjuster or independent appraiser and the body shop representative.

Agreed Value: A type of policy available for collectible, antique or custom vehicles that do not depreciate in value as the average car does. At the inception of your policy, you and your insurance company come to an "agreed value" for your vehicle and that is what will be paid out in the event of a total loss instead of actual cash value. See Auto insurance for collectible cars

Alien Insurance Company: An insurance company incorporated under the laws of a foreign country.

Amendment: A change to the basic policy contract. An amendment alters the policy; an endorsement (see definition below) adds to it.

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: Devices designed either to reduce the chance an auto will be vandalized or stolen, or assist in its recovery. Examples include car alarms, keyless entry, starter disablers, motion detectors, parts of the vehicle etched with the Vehicle Identification Number, and recovery systems.

Application: A signed statement by a prospective insured requested insurance. This can be signed electronically.

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: 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 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 Damage Division: Division of a claims department that handles auto claims.

Auto Repair/Claim Repairs: Insurance carriers have programs that maximize convenience when you have an auto insurance claim. It allows you to complete your vehicle's repair process at one location. Some CarInsurance.com carrier's claims adjusters are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through a rental car agency.

Auto Theft: The theft of an auto is a type of loss that is covered under comprehensive coverage.

Automobile Insurance: A form of insurance that protects against losses involving autos. 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.

Automobile Insurance Plans: The name for "assigned risk" plans. These are plans set up and monitored by the state to help people who are unable to secure auto insurance through standard insurance carriers. See Assigned Risk.

Automobile Insurance Premium Discounts: Discounts offered to drivers for such safeguards as air bags, seat belts, good driving record, anti-theft devices, multiple vehicles, training courses, good grades, group membership, employment or degrees, pre-purchasing, low mileage, and renewal or prior insurance.

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Basic Auto Policy: Although still used today to insure substandard risks, two-wheel motorized vehicles, and commercial autos, the Basic Auto Policy has been primarily replaced by the Personal Auto Policy, which combines both physical damage coverage and liability insurance for claims arising out of the ownership or use of a vehicle.

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.

Blue Book: A publication used for the determination of values for used automobiles and trucks. The full name of the publication is Kelley Blue Book.

Bodily Injury: An injury sustained by a person.

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Cancellation: Termination of an insurance contract before the end of the policy period, by the insured or insurer.

Car Insurance: A form of insurance that protects against losses involving cars. Car insurance provides protection from losses resulting from owning and operating a car or vehicle. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating a car.

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 Financial Responsibility: Depending on the state and Motor Vehicle requirement, this is a form certifying that specific coverage has been purchased to meet the state's Financial Responsibility laws. This could be an SR-22, FR-44, SR-50, or any other State Requirement certification form.

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.

Claim Adjuster: A person responsible for investigating and settling a claim.

Claimant: Individual or entity presenting a claim.

Clause: A section in an insurance policy that explains, defines or clarifies the conditions of coverage.

CLUE® Report: Comprehensive Loss Underwriting Exchange (CLUE) report; provides claim history information.

Combined Single Limit: Bodily Injury and Property Damage coverage expressed as one single amount of coverage.

Commercial Lines: Products designed for and bought by businesses. CarInsurance.com offers Business Auto Policies and Commercial Auto Policies.

Commission: That portion of the premium paid to the agent as compensation for the agent's services.

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 others 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. Parts meet or exceed the quality of the manufacturer's parts, but cost less. Most insurance carriers guarantee 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.

Conditions: 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 homeowner's insurance that meets the special needs of condominium owners.

Continuous Coverage or Continuous Liability Insurance: Continuous coverage refers to the length of time you have maintained insurance on your vehicle.

Contract: A legal agreement between two parties promising a certain performance in exchange for a certain consideration.

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.

Covered Person: This refers to the individuals (named insured, spouse, resident relatives, etc.) insured under a policy contract.

Customized Equipment/Special Equipment: Items not included in standard insurance options available for cars. These may include extra electronic equipment, special paint or exterior items, or amenities added to the inside of a van or truck.

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.

Declaration Page: That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.

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: Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits.

Defensive Driver Course: These are classes either offered through or approved by Departments of Motor Vehicles to enhance driving skills. These courses may make drivers eligible for discounts on their premiums. Courses taken for traffic school because of a moving violation are not eligible.

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.

Discount: A reduction in your premium if you or your car meets 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.

Domestic Insurance Company: An insurer domiciled in this state.

Drive-In Claims Office - Concierge Claims Service: An office or location that allows drivers to have simple, one-stop access for claims coverage.

Drive-Other-Car Endorsement: Optional coverage that broadens the definition of a covered auto to include non-owned vehicles the insured person operates.

Driver Education: State accredited educational course that consist of at least 30 hours of professional classroom instruction.

Driver Improvement Course: A voluntary refresher course available for drivers age fifty-five (55) and older to enhance their driving skills.

Driver Training: State accredited training course that consists of time spent behind-the-wheel with professional instruction.

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.

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E-Bill: An electronic version of your bill that you can review online. Most utility services and banks offer these services. Some CarInsurance.com insurance companies offer this ability.

E-Commerce/Electronic Commerce: The sale of products such as insurance over the Internet

Earned Premiums: The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires.

Economic Loss: Total financial loss resulting from the death or disability of a wage earner, or from the destruction of property. Includes the loss of earnings, medical expenses, funeral expenses, the cost of restoring or replacing property and legal expenses. It does not include noneconomic losses, such as pain caused by an injury.

Effective Date: The date that coverage begins on an insurance policy.

Electronic Funds Transfer (EFT): EFT is an electronic payment method that lets you pay your premiums with automatic deductions from your checking account.

Emergency Road Service Coverage: Protection for problems that are not typically handled but 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. (Also referred to as Towing and Labor)

Endorsement: A document, which is attached to the policy and modifies or changes the original policy in some way.

Estimate: As assessment of the cost to repair your damaged property.

Exclusion: Section of the insurance policy, which list property, perils, person, or situations which are not covered under the policy.

Experience: Can refer to many items such as driving record history or record of losses.

Experience Rating: Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.

Expiration Date: The date your coverage ends. There is usually a time of day associated with this date, for example, an expiration date of 5/1/2002 at 12:01am. This means your coverage ends one minute after midnight on the date listed.

Exposure: Possibility of loss. Insurance companies set rates based upon exposure.

Extended Non-Owner Liability: An endorsement that provides broader liability coverage for specifically named people operating any non-owned automobile or trailer. It covers non-owned autos, use of autos to carry people or property for a fee, and individuals driving employer-furnished cars who do not own vehicles themselves.

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Family Automobile Policy: Now replaced by the Personal Auto Policy, the Family Auto Policy was a package policy in which both liability and physical damage protection to an insured's vehicle was offered on one policy.

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.

Financial Ratings: Financial ratings reflect a rating organization's opinion on the financial strength and ability to meet ongoing obligations to policyholders. The ratings organizations most commonly identified with the insurance industry are AM Best, Standard & Poor's and Moody's.

Financial Responsibility Law: Financial responsibility laws require owners and operators of autos to maintain enough money to compensate those they injure. Liability insurance is the most common way to satisfy these requirements.

First Party: Term used to refer to an insured.

First Party Benefits: This pays policyholders and others covered by the policy in the event of injury, no matter who caused the accident. The benefits can include medical expenses, loss of income, funeral and death benefits. This may also be called Personal Injury Protection.

First Party Claims: A claim for damage, loss or injury made by an insured.

Flat Rate Cancellation: Termination of an insurance contract at inception. This policy is never in effect.

Forced Placed Insurance: Insurance purchased by a bank or creditor on an uninsured debtor's behalf to cover the property, so that the creditor receives payment if the property is damaged or destroyed.

Foreign Insurance Company: An insurer domiciled in another state.

Forms: This can be any part of your insurance policy. This may be an SR-22 form or a policy form like your application, declaration page or policy jacket. Typically, all are available in Adobe's PDF format.

Fraud: A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.

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Gap Insurance: If you are making lease or loan payments and you experience a total loss, there may be a difference (gap) between the market value of your vehicle and what you still owe on it. This optional coverage pays the difference.

Garage Location: The zip code where your vehicle is parked when not in use and usually corresponds to your primary residence.

Good Student Discount: May be awarded to full-time students who maintain a grade average of "B" or better. Each carrier has specific rules that may apply.

Guarantee Funds: All 50 states, the District of Columbia and Puerto Rico require licensed insurers to assume some of an insolvent insurance company's policyholder liabilities. These funds are used to bail out the policyholders of companies that fail.

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Hazard: Anything that increases the chance of an accident occurring.

Hit and Run: An accident caused by someone who does not stop to assist or provide information.

Homeowners Insurance: Protects homeowner's from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowner's insurance is subject to the terms, limits and conditions of your policy contract.

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ID Card: A card issued by your insurer containing basic information about your insurance policy. Some states require you to keep an ID card in your vehicle.

Inception Date: The date that coverage begins on an insurance policy.

Indemnification: The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.

Indemnity: A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.

Independent Adjuster: An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.

Inspection: Verification of a vehicle's physical condition.

Insurable Interest: Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.

Insurance: Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.

Insurance Fraud: The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance Score: Confidential ratings used for underwriting in some states as a rating tool. It may include information about the consumer's payment history, the number of open accounts and if bankruptcy has been filed. It is a measure of how financial affairs are managed and does not include assets, income information or race information.

Insured: A person or organization covered by an insurance policy.

Insurer: An organization that provides insurance.

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Joint Underwriting Association/JUA: Insurers which join together to provide coverage for a particular type of risk or size of exposure, when there are difficulties in obtaining coverage in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, such as medical malpractice

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Lapse in Coverage: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.

Leased Vehicle: A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured. See also: gap insurance.

Legal Liability: Liability imposed by law, as opposed to liability arising from an agreement or contract.

Lender: Your lender is the institution to which you make car payments.

Lessor: Your lessor is the institution to which you make your lease payments.

Liability: Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.

Liability Adjuster: The liability adjuster handles the investigation of the accident. These adjusters' responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of your claim.

Liability Insurance: Insurance providing money on behalf of the policyholder to pay because of bodily injury or property damage caused to another person and covered in the policy.

Liability Investigation: The process of gathering information to determine the cause of an accident.

Lien: A claim, charge, or encumbrance on property as a security for the payment of a debt.

Lien holder: A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

Limit: The maximum amount of protection purchased by the insured for a specific coverage.

Limits of Liability: The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.

Line of insurance: The type or kind of insurance such as personal lines, life insurance or homeowners

Loss: Any measurable dollar cost of damage and/or injury suffered by a person.

Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

Loss Payee: A person or entity with a legally secured insurable interest in another's property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.

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Malicious Mischief: Intentional damage of personal property with malice of forethought.

Material Damage: All property-related damage losses covered by the policy. This includes the following: Property Damage (PD), Comprehensive damage (COMP), Collision damage (COLL), Fire/Theft Combined Additional Coverage (FTCA), Rental Reimbursement (RREUN), or Uninsured Motorist Property Damage (UMPD).

Material Misrepresentation: The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged or fails to disclose all the residents in a household.

Mechanical Breakdown Insurance: Covers repairs to all mechanical parts of the car.

Medical Adjuster : The medical adjuster is responsible for reviewing all medical bills, replacement/essential services, and lost wages submitted to the company for injuries sustained by you and/or the passengers in your vehicle (depending upon the state in which you live and the coverage on your policy).

Medical Payments Coverage: Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.

Minimum Limits of Liability: The least amount of liability coverage that can be purchased, which is generally equivalent to the minimum amount required by state law. In determining rates, a carrier will use the basic limits to develop the base rates. If an insured person wants higher limits, the carrier applies an increased limits factor to the base rate in calculating the new premium for the increased coverage.

Misrepresentation: To make written or verbal statements that is untrue or misleading.

Motor Vehicle Record (MVR): A report from the agency that issues your driver's license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders.

Motorcycle Safety Foundation (MSF): An international non-profit organization dedicated to motorcycle safety training, research and awareness. Some applicants who complete MSF courses qualify for discounts for motorcycle insurance.

Multi-car discount: A discount offered by some insurance companies for those with more than one vehicle insured on the same policy. In some cases, if you drive a company car insured by your company, your own insurance company may give you the multi-car discount.

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Named driver exclusion: Endorsement on your auto policy that excludes a particular driver who has access to your car from coverage.

Named Insured: Any person, firm or corporation designated by name as the insured person(s) in a policy. Others may be protected by policy definition even though their names aren't on the policy, such as other drivers operating (with consent) the named insured's covered auto.

Named Non-Owner Policy: A policy endorsement for one who operates any non-owned automobile on a regular basis, such as driving a car provided by one's employer.

National Insurance Crime Bureau (NICB): A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receives support from over 1,000 property/casualty insurance companies.

Negligence: The failure to exercise the care that is expected of a reasonable person in similar circumstances.

No-Fault Insurance: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.

No-Loss Form: A statement that is a signed form telling the insurance company there have not been any losses since a certain date. The document usually includes a cancellation date, expiration date, and reinstatement date. etc.

Non-Owned Auto: Any vehicle that is not owned, borrowed, or leased by the insured, and which is used primarily for a business purpose.

Non-Owner Car Insurance: A policy providing liability coverage to a driver who does not own a vehicle, used to avoid gaps in continuous coverage, provide rental-car liability or to satisfy state requirements to reinstate a driver's license or SR-22 filing.

Non-Renewal: When an insurer decides not to renew a policy at the end of its policy period.

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Occasional Driver: The person who is not the primary or principal driver of the vehicle.

Occurrence: An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.

Original Equipment Manufacturer Parts: Auto parts obtained from the original manufacturer of the car or the supplier of the original part.

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Passive Restraint System: A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.

Payment Plans: Your auto insurance premium can be paid using one of our installment payment plans; you make several smaller payments but incur a service fee.

Payment Recovery: If your car is damaged because of another driver's negligence and you ask your insurance carrier to settle the claim for damage to your vehicle, we will seek to recover your deductible and our payments from the other party. This process of payment recovery is also called subrogation.

Per Occurrence Limit: This refers to the cap amount an insurance company will pay for all claims arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by all parties. When Bodily Injury coverage is purchased in split limits, the second limit is the "per occurrence" limit: e.g. $100,000(per person)/$300,000(per occurrence)

Per Person Limit: This refers to the cap amount an insurance company will pay for any one person's injuries arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by each person. When Bodily Injury is purchased in split limits, the first limit is the "per person" limit: e.g. $100,000(per person)/$300,000(per occurrence)

Peril: A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.

Personal Auto Policy: The most common auto insurance policy sold today. Often referred to as "PAP," this policy is written in simple wording and provides coverage for liability, medical payments, uninsured/underinsured motorist coverage, and physical damage protection.

Personal Injury Protection: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract

Personal Property: Property that is not land or connected to land (real estate), such as furniture or jewelry.

Physical Damage: Damage to your covered vehicle from perils including (but not limited to) collision or upset with another vehicle object, fire, vandalism and theft.

Physical Damage Coverage: Pays for damage to your car this could be through Collision Coverage or Comprehensive Coverage (Also referred to as Other Than Collision)

Policy: The written documents of a contract for insurance between the insurance company and the insured. Such documents include forms, endorsements, riders and attachments.

Policy Change: Any change made to your insurance policy during the period that the policy is in force.

Policy Lapse: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.

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

Policy Period: The period of time in which a policy is in effect. (For example, six months or one year).

Policy Term: The length of time that the policy is in force. Most companies offer annual and semi-annual policies.

Policyholder: One who maintains ownership in an insurance policy. This may refer to the policy owner or those covered under the policy. See also Named Insured.

Pre-accident Condition: The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.

Preferred Risk: Any risk considered to be better than the standard risk on which the premium rate was calculated.

Premium: The price of insurance an insured person pays for a specified risk for a specified period of time.

Premium Financing: When a policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.

Primary Insurance: Insurance that must be maintained as a condition of the most Personal Umbrella Policies. Primary insurance acts as the first layer of coverage on common types of losses. This usually includes auto, motorcycle and homeowner insurance, but may also include boat insurance, commercial liability or some other policy. Please check your insurance policy documents for more detailed information.

Primary Use: What your vehicle is mainly used for (pleasure, to and from work, business, commercial, or farm).

Principal Driver: The person who drives the car most often.

Private Passenger Automobile: A four-wheeled motor vehicle that is subject to motor vehicle registration and used for private personal use.

Private Passenger Autos: Ordinary cars, station wagons and jeeps, utility autos (pick-ups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.

Pro Rata Cancellation: Termination of an insurance contract before the policy expiration date on which the premium returned to the insured person is adjusted in proportion to the amount of time the policy was in effect.

Proof of Loss: A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.

Property Damage Liability Coverage: Pays for damage to someone else's property 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.

Proximate Cause: An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.

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Quote: A statement of the premium that will be charged for insurance coverages based on specific information provided by the person requesting the quote including drivers, vehicles, and driving record.

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Rate: Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium.

Rating Plan: The rules that determine the cost of your insurance premium. These rules modify the base rates by applying discounts and surcharges based on your personal characteristics, for example, using your seat belt,

Rebate: A reduction of a premium.

Red Book: A publication used for the determination of values for used automobiles and trucks.

Reinspection: A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.

Reinstatement: The restoring of a cancelled 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. They may also require a signed no-loss form.

Reinsurance: A form of insurance that insurance companies buy for their own protection, used and required to pay for losses and claims.

Release: Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.

Renewal: The process of keeping an active policy in force through the issuance of a renewal policy.

Renewal Date: The date that your insurance policy expires and the date that your renewed policy will begin.

Rental Reimbursement: Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium.

Renter's Insurance: Insurance that provides protection from losses that arise out of the rental of a home. Protection covers losses to the insured's property, not to losses that occur as a result of owning a home.

Replacement Cost: The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. This will pay the full cost to repair an item or buy a new one to replace the damaged item.

Replacement Parts: Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market; and recycled parts. New or after-market parts will be used if a carrier can't find like-kind and quality recycled parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car.

Replacement Value: The full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions.

Resident Adjuster: Staff adjuster who handles claims in remote areas of a region.

Rider: In motorcycle insurance, a rider is someone who will operate the insured motorcycle. In life and health insurance, the term "rider" is often used to refer to an endorsement to an insurance policy.

Risk: The chance of suffering a loss.

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Safe Driver Plan: A rating system that assigns points for traffic convictions and certain accidents. Similar to a merit-rating plan, each point increases the surcharge percentage to the baseline rates.

Salvage Title: A title of ownership on a car that was once deemed a total loss by an insurance company, but has since been repaired and allowed back on the roadways.

Select Repair Shop: Body shops chosen by your insurance carrier that are authorized to handle the repair of insured vehicles without the need for an inspection by an assigned adjuster. Vehicle owners should always have the right to choose the body shop of their choice.

Self-Insured Retention: In umbrella insurance, self-insured retention is similar to a deductible in other types of insurance. The self-insured retention is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.

Short Rate Cancellation: A policy termination in which the refunded premium is not proportional to the amount of time remaining in the policy period due to the fixed expenses incurred by the company. The insured will generally pay more for each day of coverage than if the policy had remained in force throughout the entire policy period.

Special Investigation Units: Your insurance carrier helps fight fraud through its special investigation unit, staffed with experts in fraud detection and investigation. Sounds official.

Split Limit: Any insurance coverage with separately stated limits for different types of coverage. Example: an automobile liability policy of 100/300/50 provides a maximum of $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and a property damage limit of $50,000 per accident.

SR-22: An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state's Motor Vehicle Department.

Stacking of Limits: The application of more than one policy limit to the same loss or occurrence. In some jurisdictions, courts have required stacking of limits when multiple policies, or multiple policy periods, cover an occurrence. For example, Uninsured motorist bodily injury limits of $100,000/300,000 on two policies owned by the same person may be added together to pay a loss. In this event, the total amount of coverage available for an accident would be $200,000/600,000.

Staff Adjuster: A non-contract or per-job adjuster that is typically employed by your insurance carrier to handle claims.

Subrogation: If your car is damaged because of another driver's negligence and you ask your insurance carrier to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.

Supplement/Supplemental Estimate: Used to cover damage not included in the original estimate. Most claims settlements do their best to estimate costs, if they are wrong you are entitled to any additional money to settle your claim. This is paid with a supplement.

Surcharge: An extra charge applied by the insurer. For automobile insurance, a surcharge is usually charged for items like accidents, moving violations, or specific risks not handled by normal rating factors.

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Term: The length of time for which a policy or bond is in force.

Theft: The unlawful taking of another's property with the intent to permanently deprive the owner of its use or possession.

Third Party: Person or entity not party to an agreement but with an interest in the agreement.

Third Party Claim: Claims for injury or damage to property of a third party alleged to have been caused by the insured.

Threshold Level: Under some no-fault insurance laws, the threshold level represents the degree of injury a claimant must establish before being allowed to sue the negligent party. The threshold may be verbal (regarding the severity of the injuries) or a dollar amount ($10,000), or both. For example, with a threshold of $5,000, an injured person may sue if his/her injuries and other economic damages (rehabilitation expenses, loss of income, etc.) exceed $5,000.

Tort: A private wrong or harm (other than a breach of contract) committed against another, resulting in legal liability. A tort is either intentional or accidental (negligent). Automobile liability insurance is purchased to protect one from suits arising from unintentional torts.

Tort Feasor: One who commits a tort (see the definition of tort).

Total Loss: The condition of an automobile or other property when damage is so extensive that repair costs would exceed the value of the vehicle or property.

Towing and Labor Costs: This endorsement, which is added to the physical damage coverage, provides reimbursement up to a specified limit to tow your vehicle or pay for on-site labor costs.

Transportation Expenses: Subject to a daily and maximum dollar limit, this coverage (under the physical damage portion of an automobile policy) pays for transportation expenses incurred by the named insured only in the event of theft of an entire covered auto. Coverage generally begins after a stated minimum waiting period.

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Umbrella Insurance: Provides high limits of additional liability coverage above the limits of your homeowner's and auto policy. In addition, it provides coverage that may be excluded by other liability policies.

Underinsured: The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

Underwriting: The process an insurer goes through to determine whether or not it will provide coverage for an applicant.

Unearned Premium: The portion of your premium remaining on your policy term. For example, with a six-month premium, at the end of the first month of the premium period, five-sixths of the premium is unearned by the insurance company.

Uninsured Motorist Coverage: A type of car insurance coverage that protects you if you're hit by a driver without insurance. If you don't have uninsured motorist, and you're hit by an uninsured driver, you may need to pay out of pocket for damages to your car.

Unsatisfied Judgment Fund: Some states have established laws to reimburse those injured in auto accidents that have been unable to collect from the responsible party.

Usage: This refers to the primary function or purpose in which you intend to operate your vehicle. For example, if you primarily drive your car to and from work, the usage is considered "commute; "if you're self-employed and you primarily drive to see customers, the usage is considered "business;" if you're retired, your usage is considered "pleasure."

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Vandalism: Destruction or defacement of property.

Vehicle Identification Number (VIN): A 17-digit number assigned to each vehicle manufactured in the United States after 1980. This number is used for identification purposes and is visible on the dashboard when viewed from the outside of the car. It indicates many identifiers including make, model, options, and year in official records (like a Social Security number for your car).

Void: A policy contract that for some reason specified in the policy becomes free of all legal effect. One example under which a policy could be voided is when information a policyholder provided is proven untrue.

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Waiver of Collision Deductible: This option pays your collision deductible when you carry collision coverage on a vehicle that is damaged by an uninsured or hit-and-run motorist who is at fault. Coverage applies only when there is actual physical contact and when you can identify the uninsured driver or vehicle.

Whole Dollar Premium: Generally, insurance premiums are rounded to the nearest dollar; an amount of 51 cents or more being rounded up to the next dollar, and any amount less than that the cents are dropped.

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You can compare car insurance quotes online with one simple form. If you find a quote that suits you and purchase a policy you will receive a free camera for your dashboard.

Already purchased through CompareNI.com, you can claim your free dash camera now by clicking here

A dash camera is an in-car digital camcorder which is designed to be mounted on your car windscreen and has a wide angle lens to capture footage of the field-of-view which is in front of the car. The camera will come supplied with an 8GB memory card along with charger, USB cable, windscreen suction mount, instruction manual. The video is set to record on a loop as you are driving and when the memory is full the camera will re-write over the old footage. If in the unfortunate event of a crash you should be able to watch back the last few minutes of recording on the video to see the incident unfold. Many people are using dash cameras as a form of evidence to prove they were not the person who caused the accident or to simply have peace of mind of what actually happened. Other people are using dash cameras to simply catch funny everyday events that happen them whilst out driving.

CompareNI or any associated third parties will not have access to any footage you may take. The camera is simply a reward to you for purchasing your car insurance policy through CompareNI.

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Our online panel of insurance providers is growing fast and they could provide insurance for nearly every type of car imaginable. Even if you are searching for classic car insurance, quotes for your SUV, or a 4x4, CompareNI.com could compare prices. We can help find great deals for almost anyone including over 50s, young drivers, women and learner drivers for a wide range of vehicles.

CompareNI's simple one-two-three quote system makes it quick and easy - just tell us about 1. Car 2. Yourself 3. What type of cover you want, and we'll give you quotes in just a few minutes! Your quotes are saved and you should be able to retrieve them another time if you aren't quite ready to buy there and then.

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Getting a car insurance quote from CompareNI.com is completely free, and the premiums that you see have should have no extra charges added on to them - we simply show you prices direct from the insurance providers, and then the choice is yours! You could compare the price and some policy details on the results page, and then you could choose to buy online from the insurer's website, or you can buy by phone instead, depending on the payment options that insurance provider offers.

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We could help you find car insurance no matter where you live in Northern Ireland including places such as Belfast, Newry, Carrickfergus, Derry, Coleraine, Ballymena, Newtownards, Lisburn, Bangor, Craigavon, Castlereagh, Cookstown, Downpatrick, Limavady, Strabane, Enniskillen, Larne, Down, Holywood, Omagh, Fermanagh, Dungannon, Lurgan, Londonderry, Antrim, Armagh, Tyrone, Banbridge, Maghera, and everywhere else!

Car Insurance Guide

Some people may find it a challenge to look for cheap car insurance. However, it is usually a good idea for people to understand the options available to them before they shop around. If someone understands the type of car insurance that would best work for them, they may then be able to compare car insurance of that type. This could potentially bring them a better deal than they might otherwise have found.

Everyone who owns a car should have car insurance

This is a legal requirement. A second driver may be able to drive another person’s vehicle if they are covered under the insurance terms that individual has in place. However, everyone who has their own vehicle in Northern Ireland and the UK should have some form of car insurance NI in place to cover them for anything that may occur.

The different types of car insurance that may be chosen

There are different options available when it comes to choosing car insurance. An individual who owns a car may consider the cost of replacing that vehicle or repairing it, and how much it is worth. This usually helps assess the best type of policy for that person to buy.

Third party:

This is the basic form of car insurance Northern Ireland residents may get. It usually covers the driver for any damage their car does to another vehicle if they are found to be at fault for causing an accident. It wouldn’t tend to cover the damage done to their own car, however.

Third party, fire and theft:

As the name suggests, this form of insurance provides cover for third party damage, but it also could provide cover for incidents of theft and fire damage. Thus if the car was stolen or set fire to, the car owner may receive a payout in accordance with the terms of the policy.

Fully comprehensive:

This may be a smart choice for someone who owns a brand new or expensive car that could cost a significant amount to repair after an accident or if it were stolen. The key aspect people may remember about this policy is that even if they were at fault for causing an accident, their insurance could cover the damage done to any other vehicle, as well as providing a payout for their own.

Shopping around to look for a good deal

There are many insurers on the market today, and any one of them may offer just the right deal a particular person is looking for with regard to car insurance. It could work well to perform an online comparison, because it allows an individual to compare different deals and prices from a range of different providers.

It could also work well to compare the small print. No two insurance quotes are likely to be identical in terms, which means a person could get a better price simply by comparing the minor details. If they ever needed to claim on their policy, they may look back and be glad they did this.

Temporary car insurance

This may be a good choice if someone only has the need to use a particular car for a short period of time. This form of insurance could be taken out for between one and 28 days. This form of insurance could be used in situations where someone has an opportunity to borrow a vehicle, either from a family member or a friend. They may not be covered by that person’s insurance policy, which means they may need to source an appropriate policy to provide the cover they need.

Again, shopping around could open the way to find car insurance cheap deals instead of paying more than might be necessary.

Driving a car for business purposes

While some people are given business vehicles to use in the course of their work, others are self-employed. If someone has their own business and they intend to use their regular car to make business journeys, their car insurance might need to reflect that. If it doesn’t, the individual may find any accident they have while on a business-related journey could render their insurance invalid. This is why it is important to make sure the proper insurance cover is in place.

Even if a person only uses their car for the occasional business journey, it is worth noting that journey may not be covered in terms of any accident or damage that may occur. Thus the proper insurance may need to be sourced from a company that could provide the right cover for the right situation.

Reducing the cost of car insurance

Shopping around could be the best way to reduce costs associated with any type of car insurance policy. By comparing details and prices from a variety of companies, it may be easier for an individual to assess whether or not they could be saving money by going with one company instead of another.

By assessing the type of insurance needed and the specific insurance company they might go with, the opportunity may be there to save money on a regular car insurance policy. This may be true regardless of whether that individual is renewing a policy on an existing vehicle, or looking for a new policy for a new car they have just bought.

Either way, it is probably easy to see the importance of looking for the best insurance for any car, regardless of age or condition.

Car insurance Q&A

Where to get car insurance quotes?

Getting a car insurance quote is usually relatively straightforward. A person looking for car insurance cover could contact individual companies to get a quote and they could then take up the quote of the company they feel happiest with. It could also be possible to search for car insurance quotes online by using a comparison company that might give several quotes from different insurers all in one go. A person might receive a renewal quote from their existing insurance company if they have had a policy previously.

Where to check car insurance?

A person looking for a new policy could check for a quote with any NI insurer. They could also check that a quote is competitive by looking to compare car insurance from a range of providers. This way they could see easily that a policy is around the same price or they could check to see if a renewal quote could be beaten.

Where is car insurance cheap?

There isn’t typically any guarantee that a car insurance policy could be cheap. However, there could be ways of reducing the price paid for insurance by using online tools like a comparison to ensure the price is as cheap as it can be. Often using a comparison to search for a cheap car policy could be the best way and could also save time.

Where are car insurance rates the highest?

Some people might think that car insurance rates are higher in a particular place but the best way of finding out for sure could be to compare car insurance. This way a driver could be presented with a range of quotes which may vary in price. They could then decide which one best suits their needs. It might be that at renewal a person is quoted a much higher rate for car insurance, in which case it could be preferable to shop around.

Where is car insurance mandatory age?

Car insurance in Northern Ireland is typically mandatory in order to drive a vehicle on NI roads at any age above the legal age of driving, assuming that a valid driving license is in place.

Where car insurance goes down?

It is generally assumed that car insurance goes down for drivers over the age of 25 but there is actually no guarantee that this is the case. Often the best way to check is to contact insurance companies or carry out a comparison online in order to find out the best and cheapest quote.

Which car insurance is best for new drivers?

New drivers might struggle to find insurance that is cheap but shopping around may really help someone avoid the very highest priced policies by checking against a range of others based on their needs. Each quote for an individual is unique so therefore there isn’t usually a prescribed best place to go for insurance for new drivers.

Which car insurance to get?

Getting car insurance might be a very individual choice as a quote could vary depending on a person’s driving experience and circumstances. Doing research in advance of taking out a policy by comparing different quotes could be the best strategy for getting a good deal.

Who pays car insurance claims?

When valid insurance is in place then it is typical that the company that offers the cover pays out any claim on a policy. An individual could be liable if the insurance isn’t valid for some reason following investigations surrounding a claim.

Who pays car insurance excess?

In the event of a car insurance claim then it could vary as to who pays the excess. If a policy holder is at fault then they themselves will pay the excess on the policy. This is the fee payable prior to any pay out being made. If that person is not at fault they may still have to pay the excess but it could be recoverable by the insurance company from the person that is determined to be at fault.

Who does car insurance cover?

Car insurance tends to be a legal requirement and it may cover the named parties on the policy. This could be the owner of the vehicle and anyone else they cite as a named driver on the policy. A policy might also cover people involved in an accident depending on the level of cover taken out and the nature of their injuries as well as the circumstances surrounding an accident.

Who needs car insurance?

A person that wishes to drive a vehicle on roads in Northern Ireland could usually require a car insurance policy in place.

What car insurance covers theft?

There tends to be different levels of cover for car insurance. In order to cover theft then a driver would usually need to opt for either comprehensive cover or third party fire and theft cover.

When does car insurance go up?

It really could depend on a person’s individual circumstances but having an accident or getting driving penalties could mean that a quote for car insurance could be higher than without those things in place.

When does car insurance start?

The date for car insurance starting is usually down to the individual driver. For a new policy they would typically set the date they wanted cover in place from. A policy usually runs for 12 months. If a person already has insurance in place then they could receive a renewal at the end of a policy that will tend to continue from the expiry of the previous cover.

Why car insurance premium increase?

A premium could increase if a person has an accident or if they receive driving penalties.

Why car insurance is important?

Car insurance could be described as important as it usually a legal requirement and also could offer valuable protection to vehicle owners and passengers.

How car insurance works UK

In the UK and NI then car insurance is usually mandatory by law. A policy could offer protection in the case of an accident, theft or damage and could pay out depending on who is decided to be at fault.

How car insurance companies make money

Car insurance companies tend to charge individuals a premium that relates to the costs of cover. They then usually work with other insurers to reach decisions in the event of an insurance claim.

Are car insurance brokers cheaper?

There are no guarantees that a car insurance broker is cheaper than going direct to an insurance company but it might be beneficial to compare car insurance in order to know for sure.

Are car insurance companies open on weekends?

It tends to depend on the individual company but typically a car insurance company could have weekend opening hours.

Are car insurance companies regulated?

Yes – by the Financial Ombudsman Service.

Are car insurance rates negotiable?

When a person is searching for car insurance they could negotiate on price ahead of taking out a particular policy.

Are car insurance premiums tax deductible?

If a car is used for personal use only then car insurance probably isn’t tax deductible. If used for business use as well then a proportion of the running costs associated with a business may be tax deductible.

Are car insurance premiums paid monthly?

Car insurance could be paid monthly or annually and this tends to be determined at the start of a policy. Monthly payments are likely to work out slightly more overall than if a person pays for a whole year up front.

Are car insurance quotes accurate?

In order to receive an accurate quote then providing as much information as possible up front could be important. Quotes are tailored to individual circumstances and if these aren’t accurate then the chances are the quote may not be either.

Are car insurance rates going up?

The cost of car insurance usually goes up in line with the cost of motoring. This could be added to depending on the impact of invalid claims on the overall insurance market.

*51% of consumers could save £200. We split the providers on our system into different categories. We then selected quotes from the high volume sales providers as well as quotes from other providers which returned a price. Based on UK insurance market share data made available by the ABI, by way of a weighted selection process, we selected the cheapest of either the high volume sales providers or other providers (“the cheapest selected quote”). We then compared the cheapest quote on our system against the cheapest selected quote. We then took the savings figure which 51% or over could have saved using that formula. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.

*Purchase a car insurance policy through CompareNI.com and claim your free dash board camera ( Subject to Terms and conditions)

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Hit the road with the right car insurance policy

Auto insurance is a must if you own a car. Most states require you to carry insurance, and without it, you face financial disaster if you cause a serious accident and get sued.

Car insurance can also pay to repair your vehicle if it gets damaged in a crash or natural disaster, like hail or wildfire, or is vandalized or stolen.

Car insurance coverage types

One policy can include several types of coverage.

Liability insurancepays for others' damage and injuries when you cause an accident. Most states require you to carry at least a minimum level of bodily injury and property damage liability coverage. See states minimum car insurance requirements.

The coverage limits are expressed as three numbers. Limits of 25/50/25, for example, would provide up to $25,000 per person injured in an accident, up to $50,000 of coverage for injuries per accident and $25,000 for property damage per accident. Remember, liability insurance pays out to other people; it does not cover you, your passengers or your car.

Personal injury protection (PIP) or medical payments (MedPay) coverage pays the medical bills for you and your passengers after a car accident, regardless of who caused the crash. PIP also covers lost wages and funeral costs. Some states require you to buy PIP or MedPay.

Uninsured motorist (UM) and underinsured motorist (UIM)comes to the rescue if you're hit by a driver who has no insurance or not enough coverage. UM pays your medical bills if you're injured in an accident caused by an uninsured driver. UIM kicks in if your medical expenses exceed the other driver's liability coverage limits. UM and UIM are required in some states.

Uninsured motorist property damage (UMPD)covers your car if an uninsured driver hits you, but the coverage isn't available in every state. Roughly one in eight drivers is uninsured, according to a 2014 Insurance Research Council report.

Collision coverage pays to repair your own vehicle after a crash. It's an optional form of coverage, although your car-loan lender might require you to have it. Collision will kick in if you hit a tree, for example. Or, if an uninsured driver hits you and you don't have UMPD, you could make a collision claim for your car's repairs. Any collision payment will be reduced by the amount of your collision deductible.

Comprehensive coverage has a misleading name because it applies only to certain circumstances. It pays out if your car is stolen (and not recovered) or damaged by a natural disaster, if you hit an animal or if your car is vandalized. Like collision, comprehensive is optional, but your lender might require it. Here too, a comprehensive claim payment will be reduced by the amount of your deductible.

Roadside assistance and other extras can come in handy in a pinch. Roadside assistance covers towing and emergency roadside service when your car breaks down. Rental reimbursement pays for a rental car while your car is in the shop after a covered accident. Gap coverage kicks in if the insurer declares your car a total loss, and the payout from the insurance company for the vehicle's actual cash value is less than the amount you owe on the car loan. See: Save yourself some car insurance grief: Buy gap coverage.

How car insurance rates are set

The price you pay for car insurance depends on the type and amount of coverage you buy, the deductible for collision and comprehensive insurance, the kind of vehicle you own and the characteristics of you and the other drivers listed on the policy. Here are the most and least expensive 2016 vehicles to insure.

Factors that insurers generally consider when setting your rate include:

  • Your driving record. Speeding tickets and other infractions increase premiums.
  • Your accident and claims history. There's no point trying to hide your previous problem. Insurers will access your C.L.U.E. report to find out your claims for the past seven years.
  • Your credit record. A good credit history helps keep premiums low. Insurers say there is a link between spotty credit history and the likelihood of filing claims. Not all states allow credit to be a factor in auto insurance pricing.
  • Your age. Rates are highest for teenagers because they are risky drivers. Their crash rate per mile driven is about three times that of drivers age 20 and older, according to the Insurance Institute for Highway Safety. Rates begin to drop around age 25, and you'll likely enjoy the best rates in your 50s and early 60s.
  • Your sex. Young women usually qualify for lower rates than young men, but the difference diminishes with age.
  • Where you live. Car insurance rates vary widely by state and also by ZIP code. Insurers base rates on where the car is garaged.
  • How much you drive. Your daily commute and annual mileage will affect your rate. The more your car is on the road, the greater your chance for a claim.

Shopping for auto insurance

Consider your assets when deciding how much liability insurance to buy. The state minimum requirements for coverage are too low for many people. Collision and comprehensive insurance are important for newer vehicles but usually aren't cost-effective for clunkers.

Shop around for car insurance quotes - rates, policy options and customer service vary by insurer. Insure.com's customer satisfaction ratings reveal which insurers get the highest marks.

And make sure you take advantage of discounts in order to lower your bill. Typical discounts include those for multiple vehicles on a policy, auto safety features, antitheft devices and good students. You might also be able to get a discount for paying in full, buying home insurance with the same insurer, or being a customer for a few years or more.

Are insurance settlements taxable? By Emmet Pierce, Insure.com / Jan. 20, 2017

Insurance settlements typically are not taxable, however there are exceptions to every rule.

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