Actual Cash Value
The fair market value of property. Actual Cash Value (ACV) is computed by subtracting the depreciation from the replacement cost.
Actuary
A statistician who computes the financial impact of risk and uncertainty. Actuaries help keep Elephant profitable by setting prices and determining how much to hold in reserve to pay claims.
Adverse Carrier
A term often used to refer to the other party's insurance company.
Amendment
An alteration to the basic policy contract. This is not to be confused with an endorsement, which adds to a policy.
Appraisal
A process, performed by an impartial expert, that determines the value of property, or the extent of damage to the property.
Arbitration
A process of settling a dispute outside the courts through an impartial party, wherein the resolution is agreed to be bound.
Assigned Risk (AIP)
A driver who does not qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each insurance company must provide policies for a proportionate share of these drivers.
At-Fault
The party that is legally liable for the damages incurred through an accident.
Auto Insurance
Provides protection from losses to the insured's property and losses for which the insured is liable as a result of owning or operating an auto.
Auto Theft
The theft of an auto is covered under comprehensive coverage.
CLUE® Report
Comprehensive Loss Underwriting Exchange (CLUE) report provides claim history information.
Cancellation
The termination of an insurance contract before the end of the policy period, either by the insured or insurer.
Catastrophe
A disaster affecting a specific geographic area that often causes injuries and extensive property damage. Hurricanes, tornadoes and floods are examples of catastrophes.
Claim
A request for payment from the insurance company based on the terms of the insurance policy.
Claim Adjuster
A person, employed by the insurance company, responsible for investigating and settling a claim.
Claimant
Person or entity presenting a claim.
Collision Coverage
Pays for damages to an insured car when it hits or is hit by another car or object. This coverage is subject to the terms, limits and conditions of your policy contract.
Comparative Negligence
A principle of law that, in some states, may enable claimants to recover a portion of their damages even if they are partially at fault, or negligent. Each party's negligence is compared to the other's and a claimant's recovery can be reduced by the percentage of his or her own negligence.
Competitive Auto Repair Parts
Parts made by a company other than the manufacturer of the auto. All parts Elephant authorize meet or exceed the quality of the equivalent manufacturer's parts, but cost less. We will guarantee these parts for as long as you own the car.
Competitive Estimate
The consideration of multiple repair estimates.
Comprehensive Physical Damage Coverage
Pays for damages to your vehicle from vandalism, theft, flood, fire or other covered perils. This coverage is subject to the terms, limits and conditions of your policy contract.
Condition
The section of the insurance contract that lists the duties and responsibilities of both the insured and the insurance company following a loss.
Continuously Insured
Insurance coverage from an insurer that was in effect at all times, without a break or lapse in coverage for any reason.
Contributory Negligence
A principle of law that, in some states, may prevent claimants from recovering any portion of their damages if they are partially at fault, or negligent.
Coverage
Protection and benefits provided by the insurance company in the insurance contract.
Damage
Loss or harm to a person or property.
Damages
Money that one party is legally obligated to pay to another party.
Declarations
The section of an insurance policy that includes the following:
– your name and address
– the vehicle that is being insured
– types of coverage you have elected
– limit for each coverage
– cost of each coverage
Deductible
The portion of a claim that is not covered by the insurance provider. It is the amount you pay out of pocket before the insurance company will cover any expenses. Choosing a higher deductible will lower your insurance premiums.
Depreciation
The reduction in value of a property due to usage, time, wear and tear, technological outdating, depletion, inadequacy, rust, decay or other such factors. Generally, depreciation is not an insurable loss.
Discount
A reduction in your premium if you or your car meets certain conditions that are likely to reduce the insurer's losses and expenses. Elephant gives discounts for clean driving records, good students, multiple cars, and paperless accounts.
Indemnification
The act of providing payment for a loss with the intent to restore an individual to the approximate financial position prior to the loss.
Indemnity
Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss. Forms of indemnity include cash payments, repairs, replacement, and reinstatement.
Independent Adjuster
An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.
Inspection
Confirmation of a car's physical condition.
Insurable Interest
Exists when an individual would suffer a financial loss as the result of damage to property or bodily injury.
Insurance
Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium, the insurer promises compensation for specific potential future losses.
Insurance Fraud
The act of falsifying the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.
Insured
An individual or organization covered by an insurance policy.
Insurer
An organization that provides insurance.
Leased Vehicle
A vehicle rented under a long-term contract. The leasing company must be shown on your insurance policy as an insured.
Legal Liability
Liability forced by law, as opposed to liability arising from an agreement or contract.
Liability
Any legally enforceable obligation for the injury or damage suffered by another person.
Liability Adjuster
The liability adjuster handles the investigation of the accident. These adjusters' responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of your claim.
Liability Insurance
Insurance that provides protection from claims arising from injuries or damage to other people or property.
Lien
A claim on property as a security for the payment of a debt.
Lienholder
A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.
Limit
The maximum amount an insurance company will pay for damages or injuries that apply to the coverage. Most states have laws that specify the minimum limit that must be purchased for each required insurance coverage.
Limits of Liability
The amount named in your policy up to which the insurance company will protect you.
Loss
An instance or measurable cost of damage and/or injury suffered made by an insurance policyholder.
Loss of Use
Compensation to a third-party claimant for financial losses resulting from the inability to use the property as the result of accident-related damage.
Passive Restraint System
A passenger safety system, such as an air-bag, that activates automatically and instantaneously in the event of an accident.
Payment Recovery Adjuster
The Payment Recovery Adjuster is responsible for recovering your deductible from the other party's insurance company.
Peril
A danger or hazard that can cause a loss.
Personal Injury Protection
May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.
Personal Property
Tangible movable property, exclusive of land and including items such as automotive vehicles, boats, and money.
Physical Damage
Damage to property.
Policy
A contract between you, the insured, and the insurance company.
Policy Change
Any change made to your insurance policy during the period that the policy is active.
Policyholder
The named person or entity listed on the policy declarations page, who has purchased the insurance policy.
Pre-accident Condition
The state and condition of the vehicle prior to the accident, including damage not related to the accident, mileage, options, and other factors.
Premium
The fee of the insurance policy that the insured pays in exchange for insurance coverage.
Proof of Loss
A statement made regarding the scope of the claim; it may be requested in accordance with the conditions of the policy.
Property Damage Liability Coverage
Pays for damage to someone else's property resulting from an accident for which you, the insured, are at fault. This coverage is subject to the terms, limits and conditions of your policy contract.
Proximate Cause
An act or omission initiating a continuous sequence of events resulting in bodily injury or property damage.
Rate
Often used as a synonym for premium but in fact refers to the base rating units that are used to determine the final premium.
Rating Plan
The system that determines your insurance premium rate. These rules change the base rates by applying discounts and surcharges based on your personal uniqueness, for example, using your seat belt, having anti-lock brakes, and insuring more than one vehicle.
Reinspection
A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.
Release
Legally binding contract stating that all obligations, arising from a particular accident or occurrence, have been fulfilled.
Renewal Date
The date your insurance policy expires, and the date your renewed policy will begin.
Rental Reimbursement
Optional coverage that helps pay rental vehicle expenses when your insured vehicle is inoperative as the result of an accident or loss. Available to most policyholders for an additional premium.
Replacement Parts
Several types of parts may be used when your vehicle is repaired: new parts, original equipment manufacturer and after-market. New or after-market parts will be used if we can't find similar-class parts.
Risk
The chance of incurring a loss.