In automobile insurance, 'assigned risk' refers to a classification of drivers to whom insurance companies will not issue policies voluntarily due to their high-risk profile, commonly resulting from a history of accidents or violations. These individuals are assigned to insurance companies by state law and are required to pay higher premiums.
A personal automobile policy (PAP) provides comprehensive car insurance with multiple coverages, designed to replace the earlier Family Automobile Policy (FAP). It offers a wide range of protections including liability, medical payments, uninsured motorist coverage, comprehensive, collision, and several optional coverages.
Comprehensive insurance coverage in automobile insurance provides protection from physical damage (other than collision) and theft of the insured vehicle, covering events like fire damage, vandalism, and natural disasters.
Compulsory insurance refers to insurance coverage mandated by law. It requires individuals or businesses to possess a minimum amount of insurance to cover specific risks and liabilities, ensuring financial protection and compliance with regulatory standards.
Insurance cover against the occurrence of certain specified events. The most common examples of general insurance relate to the risks of fire, automobile damage or loss, and theft.
No Fault Insurance is a system where all individuals insured in an automobile accident can receive compensation for injuries without determining who was at fault.
A type of coverage in which an insured's own policy indemnifies them for bodily injury and/or property damage without regard to fault. This system is designed to simplify claims and reduce litigation in auto accidents.
Uninsured Motorist Insurance is a form of automobile insurance that covers the policyholder and family members for injuries caused by a hit-and-run driver or an uninsured motorist, provided the at-fault driver carries no liability insurance.
