Automobile Insurance

29 Non-renewal—This is when you or your insurance company does not renew your policy at the end of its term. Policy—This is your contract with the insurance company. It explains your coverage. It also states the rights and duties of both you and the insurance company. Premium—The amount you pay to buy an insurance policy. Private passenger automobile—Four-wheeled motor vehicles for use on public highways, like cars, station wagons, SUVs, and vans. They must be registered with the state. Quotation (quote)—An estimate of your insurance premiums based on the information you give to the agent, broker, or insurance company. Recision—The cancellation of a policy back to its start date. If this happens, the insurance company does not pay for any of your losses, and your premiums are refunded. This can happen if you knowingly gave false information when you applied for the policy. Subrogation—When one insurance company pays money on a claim, and then tries to get paid back or reimbursed by another insurance company. Surcharge—An extra charge that is added to the premium by an insurance company. This usually happens because a covered driver has had an accident or moving violation that is their fault. Uninsured/Underinsured Motorist Coverage (UMC)— Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance or whose liability limits are too low to pay for all the damage.