contact us 1-954-436-8800

Terms and Definitions

AUTO INSURANCE TERMS AND DEFINITIONS

Knowing the language of auto insurance can help. These definitions are provided by the Florida Department of Financial Services.

Adjuster

  • An adjuster is a person licensed by the Department of Financial Services who evaluates the damage caused by an accident or other covered loss and determines the amount to pay.

Agent

  • An agent is a person licensed by the Department of Financial Services who sells and services insurance policies.

Binder

  • A binder is a temporary document issued by theagent that provides proof of coverage until an insurance company issues a permanent policy.

Cancellation

  • Cancellation is the termination of an insurance policy before its normal expiration date.

Comparative Negligence

  • Comparative negligence is a determination of the percentage of fault shared by each driver who contributed to an accident.

Deductible

  • A deductible is the amount a policyholder must pay per claim or accident.

Exclusion

  • An exclusion is a provision in an insurance policy that denies coverage for certain losses, persons or property.

Florida Insurance Guaranty Association

  • The Florida Insurance Guaranty Associations a nonprofit corporation created by state law to pay claims in the event of the bankruptcy of a property and casualty insurance company licensed in Florida.

Insurance Identification (I.D.) Card

  • An insurance identification card is a wallet-sized card issued by an insurance company that indicates the insured’s policy number and coverage.

Insured

  • The insured is the person(s) covered under an insurance policy. The term can also be used in describing items that are covered.

Insurer or Insurance Company

  • An insurer or insurance company is the company providing the insurance.

Liability

  • Liability insurance is coverage for a policyholder’s legal liability resulting from injuries to other persons or damages to their property.

Liability Insurance

  • An adjuster is a person licensed by the Department of Financial Services who evaluates the damage caused by an accident or other covered loss and determines the amount to pay.

Limits

  • Limits are the maximum amounts of benefits, as per the contract that the insurance company will pay in the event of a loss.

No-Fault Insurance

  • No-fault insurance compensates you for a loss according to the terms of your policy, regardless of who caused the accident. In Florida, no-fault insurance applies to personal injury only and does not provide any coverage for your vehicle.

Non-renewal

  • Non-renewal is the termination of an insurance policy at its normal expiration date.

Premium

  • A premium is the charge for insurance based on the type and amount of coverage.

Premium Finance Company

  • A premium finance company is a lending institution that finances insurance premiums for a fee. A premium finance company in Florida must obtain a license from the Department of Financial Services.

Surcharge

  • A surcharge is an additional charge added to the basic policy premium.

Subrogation

  • Subrogation is the process by which an insurance company, after paying a loss to its insured, recovers the amount paid for damages (which can include the insured’s deductible) from the legally liable party.