Accident Forgiveness
In most states, if you've been accident-free for three to five years, you may qualify for GEICO's Accident Forgiveness program*. That means we won't add a surcharge to your
premium after your next at-fault accident and you'll get to keep any of the good driver discounts you've earned.
* Eligibility for GEICO's Accident Forgiveness program is determined by your specific policy type, as well as your state laws and regulations.
Actual Cash Value
The fair market value of property; technically, replacement cost less
depreciation.
Actuary
A statistician who computes insurance risks and
premiums. Actuaries keep GEICO profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.
Adjuster
Adverse Carrier
Term used to refer to the other party's insurance company.
After-Market Parts
Agent
An individual who acts as a representative for the company and sells insurance, usually on a commission basis. This individual could be an 'exclusive' or 'non-exclusive' agent.
Agreed Price
Amendment
A change to the basic policy contract. An amendment alters the policy; an
endorsementadds to it.
Anti-lock Braking System (ABS)
A computer-controlled high pressure system that assists the vehicle's normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.
Anti-Theft Device
A device that deters auto theft. Autos equipped with these devices may entitle you to a
discount on your insurance
premiums.
Appraisal
Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.
Arbitration
A process of settling a dispute through an impartial party. It is used as an alternative to litigation.
Assigned Risk (AIP)
A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners.
Assured
At-Fault
The party that is legally liable for the damages in an accident.
Auto Damage (AD)
Division of the claims department that handles auto
claims.
Auto Damage Adjuster
The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your
rental vehicle, or your
total loss settlement.
Auto Insurance
Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating an auto.
Auto Repair Xpress®
GEICO program that maximizes convenience. It allows you to complete your vehicle's repair process at one location. GEICO Auto Damage adjusters are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through Enterprise Rent-A-Car. All work is guaranteed for as long as you own the vehicle.
Auto Theft
Berkshire Hathaway
Binder
A temporary agreement declaring that the
policy is in effect. Used in certain cases to protect a
policyholder when it is not possible to issue or endorse the policy immediately.
Bodily Injury
An injury sustained by a person.
Bodily Injury Liability Coverage
Pays damages for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense. This coverage is subject to the terms,
limits and
conditions of your policy contract.
Cancellation
Termination of an insurance contract before the end of the policy period, by the insured or insurer.
Carrier
Catastrophe
A disaster affecting a specific geographic area.
Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.
Certificate of Financial Responsibility (CFR)
Certificate of Satisfaction
A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.
Claim
Any request or demand for payment under the terms of the insurance policy.
Claimant
Individual or entity presenting a
claim.
Claim Examiner
CLUE® Report
Comprehensive Loss Underwriting Exchange (CLUE) report; provides claim history information.
Collision Coverage
Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. This coverage is subject to the terms,
limits and
conditions of your policy contract.
Comparative Negligence
A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when 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 we authorize meet or exceed the quality of the manufacturer's parts, but cost less. GEICO guarantees these parts for as long as you own the car.
Competitive Estimate
A term used when an insurance company requests that you submit multiple repair
estimates for consideration.
Comprehensive Physical Damage Coverage
Pays for damage to your car from theft, vandalism, flood, fire or other covered perils. This coverage is subject to the terms,
limits and
conditions of your policy contract.
Condition
The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.
Condo Insurance
A type of homeowners insurance that meets the special needs of
condominium owners.
Contributory Negligence
A doctrine of law that, in some states, may prevent
claimants from recovering any portion of their damages if they are even partially at fault, or negligent.
Coverage
Protection and benefits provided in an insurance contract.
Customized Vehicle
A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.
Damage
Loss or harm to a person or property.
Damages
Money that one party becomes legally obligated to pay to another party.
Declarations
The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance
coverageand the applicable
premiums.
Deductible
The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance
premiums.
Defensive Driver Discount
Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this
discount on their auto insurance
premiums.
Depreciation
The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.
Direct Check
Direct Check is GEICO's electronic payment method that lets you pay your
premiumonline with an electronic check.
Direct Pay
Discount
A
reduction in your premium if you or your car meet certain conditions that are likely to reduce the insurer's losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.
Drive-In
A GEICO office staffed with GEICO employees where
insureds and
claimants bring their vehicles for damage inspections and estimates.
Driver Training Discount
A
discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.
Electronic Funds Transfer (EFT)
EFT is an electronic payment method that lets you pay your
premiums with automatic deductions from your checking account.
Emergency Road Service Coverage
- being locked out of your car
- towing not related to an accident
- having a dead battery re-charged
- inflating a flat tire
- filling an empty gas tank.
Endorsement
An addition to the basic policy contract. An endorsement adds to the policy contract; an amendment alters it.
Estimate
An assessment of the cost to repair your damaged property.
Exclusion
Restriction in your insurance policy that limits and may exclude coverage for certain perils, persons, property, or locations.
Expiration Date
This date, found on your
declarations page, indicates when your policy coverage runs out. Your renewal policy will start on this date.
Field Adjuster
An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene
investigations, and damage inspections.
Financed Car
A vehicle financed by a loan. The lender retains a
lien on the auto until it has been paid off.
First Party
First Party Claims
A claim for damage, loss or injury made by an insured.
Two types of forms are important in insurance: 1. pre-printed contracts that comprise your insurance policy, 2. questionnaires or coverage selection forms that a
policyholder is required to fill out.
Gap Insurance
An automobile insurance option that comes into play when your vehicle is stolen or
totaled. Gap insurance covers the "gap" or difference, if any, between your car's
actual cash value and what you still owe on it. GEICO does NOT currently offer gap insurance. You may want to check with your financing company to see if you have gap insurance or if it is available to you.
GEICO®
Government Employees Insurance Company and its affiliates GEICO General Insurance Company, GEICO Indemnity Company and GEICO Casualty Company market collectively under the trademarks GEICO and GEICO Direct.
GEICO Direct®
A brand name that includes all of the GEICO companies.
GEICO Overseas
Good Student Discount
May be awarded to full-time students who maintain a grade average of "B" or better.
Hazard
Anything that increases the chance of an accident occurring.
Homeowners Insurance
Protects
homeowners from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowners insurance is subject to the terms, limits and conditions of your policy contract.
Indemnification
The act of providing compensation for a loss with the intent to restore an individual or entity 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.
Independent Adjuster
An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.
Inspection
Verification of a vehicle's physical condition.
Insurable Interest
Exists when an individual would suffer an economic 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 to reimburse the person for their covered losses.
