Car Insurance

Accidental Death Coverage – The component of your auto insurance which covers the insured in the case of them dying from accident related injuries, in which case the auto insurance coverage may provide a payment to the insured’s designated beneficiary.

Accident Forgiveness- Accident forgiveness means that some auto insurance companies won’t add a surcharge to your premium after an at-fault accident. Customers who have not had an at-fault accident in the previous five years usually qualify for this program if offered by their auto insurance company.

Actual Cash Value- What your vehicle is worth. The purchase price of the car minus any accumulated depreciation. If your car is totaled, this is the amount you would be reimbursed.

Adverse Selection- Adverse selection refers to the tendency of high-risk (non-standard) drivers to seek an insurance policy with richer benefits than those who are at a lower risk.

Auto Insurance Agent (Broker) – Authorized representatives of the auto insurance company. They sell auto insurance coverage as well as manage the policy once it is in force.

Auto Insurance Premium- Your auto insurance premium is the amount you pay for auto insurance coverage. Your premium may be expressed monthly, quarterly, semi-annually or an annual premium, whichever you choose.

Anti-theft Recovery System- A device that will help to locate and recover your car in the event that it is stolen. You may be eligible for auto insurance discounts if you install one of these devices in your car.

Bodily Injury Liability Coverage- Bodily injury liability coverage is the portion of auto insurance coverage that protects you if you are held responsible for injuring someone else in a car accident. The amount of coverage for the victim is capped at the limits you select when you purchase your auto insurance policy.

Broad form Collision Coverage- Broad form collision coverage is only relevant as a portion of auto insurance coverage in Michigan. This type of collision coverage works like typical collision coverage, but also pays for collision damage to your insured car regardless of who’s at fault.

First Party – The policyholder (insured) in an insurance contract.

Full Tort – With a Full Tort selection, you retain unrestricted rights to bring suit against the negligent party.

Funeral Benefit - This coverage pays, up to a certain dollar amount, money for funeral expenses if you or a family member dies as a result of an auto accident.

First Party Benefits (Personal Injury Protection) :This pays policyholders & others covered by the policy in the event of injury. ( medical expenses, loss of income, funeral and death benefits)

Family Automobile Policy: (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.