Insurance terms
Policy language, claim handling, coverage, adjusters, valuation, and insurer processes.
Actual Cash ValueAn insurer’s estimate of property value immediately before a loss, often based on market value, condition, age, and comparable property.AdjusterA person who investigates, evaluates, negotiates, or administers an insurance claim for an insurer or policyholder.Bad FaithUnreasonable or dishonest claim handling that may create additional legal remedies under applicable insurance law.Bodily Injury Liability CoverageAuto insurance coverage that may pay amounts an insured legally owes for injuries caused to other people.ClaimA request for payment, benefits, defence, or another response under an insurance policy.Claim NumberA unique identifier assigned by an insurer to track a reported loss or benefit request.Collision CoverageOptional first-party coverage that may pay for damage to the insured vehicle caused by collision, subject to policy terms and deductible.Comprehensive CoverageCoverage for specified non-collision vehicle losses such as theft, fire, vandalism, falling objects, or weather, subject to policy wording.Coverage LimitThe maximum amount an insurer may pay for a covered loss, person, accident, or policy period.Declarations PageThe policy summary showing named insureds, vehicles, coverage types, limits, deductibles, and policy dates.DeductibleThe portion of a covered loss the policyholder must generally absorb before insurance payment applies.Diminished ValueThe alleged reduction in a repaired vehicle’s market value because it has a collision history.ExclusionA policy provision that removes specified people, property, causes, or situations from coverage.First-Party ClaimA claim made by an insured person under their own insurance policy.Gap InsuranceCoverage designed to address some difference between a vehicle’s insured value and the balance owed on financing or a lease after a total loss.Independent Medical ExaminationAn examination arranged by an insurer or litigation party to obtain an independent medical opinion, subject to applicable rules.Insurance PolicyThe contract describing covered risks, duties, limits, exclusions, conditions, and the insurer’s obligations.Liability CoverageInsurance that may defend and indemnify an insured against covered claims alleging legal responsibility to others.Medical Payments CoverageOptional auto coverage in some jurisdictions that may pay specified medical expenses without regard to fault, subject to limits and terms.No-Fault BenefitsBenefits available under a system that provides specified payments through a person’s own insurer without first proving another driver’s fault.Policy LimitsThe maximum insurance available under a policy for a particular coverage, person, occurrence, or period.PremiumThe amount charged for insurance coverage.Recorded StatementAn audio or video interview about a claim, often requested by an insurer and preserved as part of the claim file.Rental Reimbursement CoverageOptional coverage that may pay some temporary transportation costs while a covered vehicle is being repaired or replaced.Reservation of RightsA notice that an insurer is investigating or providing a defence while preserving the right to dispute coverage later.