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Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.
Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.
Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.
Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.
Insurer
The insurance company providing the insurance.
Negligence
The absence of ordinary care.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Premium
The money paid for an insurance policy based upon the coverage provided.
Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.
Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.
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