Auto Insurance Glossary | Complete List of Auto Insurance Terms & Definitions at Automotive.com

Common Auto Insurance Terms

Insured A person or organization covered by an insurance policy, including the "named insured" and any other parties for whom protection is provided under the policy terms.

Adjuster A person who investigates and settles losses for an insurance carrier.

Broker A marketing specialist who represents insurance organizations and who deals with either agents or companies in arranging for the coverage required by the customer.

Rated Policy Sometimes called an "extra-risk" policy, an insurance policy issued at a higher-than-standard premium rate to cover the extra risk where, for example, an insured has had a DUI or other traffic violations.

Independent Agent An independent business person who usually represents two or more insurance companies in a sales and service capacity and who is paid on a commission basis.

Standard Risk A person who, according to a company's underwriting standards, is entitled to purchase insurance protection without extra rating or special restrictions.

Adjusting The process of investigating and settling losses with or by an insurance carrier.

Third Party The claimant under a liability policy. So called because the person making the claim is not one of the two parties, insured and insurer, to the insurance contract. Third party claim: a demand made by a person against a policyholder of another company and any payment that will be made by that company.

Accident An event or occurrence which is unforeseen and unintended.

Good Student Discount Reduction of automobile premium for a young driver at least sixteen who ranks in the upper 20 percent of his or her class, has a B or 3.0 average, or is on the Dean's list or honor roll. It is based on the premise that good students are better drivers.

Glossary of Auto Insurance Terms

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Common Auto Insurance Terms

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