Auto Insurance terms starting with P

10 terms

1. Personal Injury Protection (PIP) This is a mandatory no fault coverage for automobile insurance providing benefits including, but not limited to, medical expenses, loss of income…
2. Policy The contract form issued by the company to explain the coverage provided. It is a legal document.
3. Policy period The amount of time an insurance contract or policy provides coverage.
4. Premium The price charged for insurance.
5. Premium Finance Company A lending institution that finances automobile insurance premium for a fee.
6. Pro rata cancellation Revocation of a policy by an insurance company that returns to the policyholder the unearned premium.
7. Producer (agent) A licensed individual or organization authorized to sell, solicit, negotiate and service insurance policies for an insurance company.
8. Proof of loss Documents that you give the insurer to support your request for payment of losses.
9. Property damage (PD) Physical damage to property.
10. Property Damage Liability Pays for damage to another person’s car or property such as fences, buildings, utility poles, signs, and trees.