Frequently Asked Questions

How can I get a quote? You can complete the online Rate Quote Request form on this web site or contact us by phone at 301-515-9015, Monday through Friday 9am to 6pm and Saturday 9am to 1pm.

Can I get immediate coverage? Yes. We will need a completed application and signature, verification of your information, and obtain minimum or full payment no later than the effective date of the policy.

What are the payment options? We accept cash, check, money order, and all major credit cards. Full premium or monthly payment options are available.

Are discounts available? Insurance policy discounts are available for a wide range of options including auto safety devices such as anti-lock brakes, anti-theft devices, multi-policy, education degree, good student, and renewal. Specific discounts that apply depend on the coverage, insurance type, and company.

Glossary of Insurance Terms

Adjuster A representative of the insurer who seeks to determine the extent of the firm's liability for loss when a claim is submitted. Same as Claim Representative.

All-Risks Insurance The term "All-Risks Insurance" is used to mean insurance against loss of or damage to property arising from any fortuitous cause except those that are specifically excluded. An insurance contract which provides All-Risks Insurance is an All-Risks policy. Contrast with Named Perils.

Amendment A formal document which corrects or revises an insurance master policy. See also Endorsement and Rider.

Anti-Theft Device Devices designed either to reduce the chance an auto will be vandalized or stolen, or assist in its recovery. Examples include car alarms, keyless entry, starter disablers, motion detectors, parts of the vehicle etched with the Vehicle Identification Number, and recovery systems.

Application A form on which the prospective insured states facts requested by the insurer on the basis of which, together with information from other sources, the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk. See App.

Appraisal An evaluation of property made to ascertain either the appropriate amount of insurance to be written or the amount of loss to be paid.

Basic Limits of Liability The least amount of liability coverage that can be purchased, which is generally equivalent to the minimum amount required by state law. In determining rates, a carrier will use the basic limits to develop the base rates. If an insured person wants higher limits, the carrier applies an increased limits factor to the base rate in calculating the new premium for the increased coverage.

Bodily Injury Liability Legal liability for causing physical injury or death to another.

Binder An agreement executed by an agent or insurer (usually the latter) putting insurance into force before the contract has been written or the premium paid.

Cancellation Termination of a contract of insurance in force by voluntary act of the insurer or insured in accordance with the provisions in the contract or by mutual agreement.

Comprehensive Coverage Covers damage to a vehicle caused by an event other than a collision or overturn. Examples include fire, theft, vandalism, and falling objects.

Collision Insurance This covers loss to the insured person's own auto caused by its collision with another vehicle or object

Covered Loss Illness, injury, death, property loss, legal liability, or any other situation or loss for which an insurance company will pay benefits under a policy when such event occurs.

Deductible The amount an insured person must pay before the insurance company pays the remainder of each covered loss, up to the policy limits

Depreciation A decrease in the value of any type of tangible property over a period of time resulting from use, wear and tear, or obsolescence.

Driver Training State accredited training course that consists of at least six hours of behind-the-wheel professional instruction.

Effective Date/Inception Date The date that coverage begins on an insurance policy.

Endorsement A written or printed form attached to the policy which alters provisions of the contract.

Exclusion A contractual provision that denies coverage for certain perils, persons, property, or locations.

Expiration Date The date your coverage ends. There is usually a time of day associated with this date, for example, an expiration date of 5/1/2002 at 12:01am. This means your coverage ends one minute after midnight on the date listed

"First" Named Insured The first named insured appearing on a commercial policy. The latest forms permit the insurer to satisfy contractual duties by giving notice to the "first" named insured rather than requiring notice to all named insureds.

Good Student Discount A premium discount for students with high scholastic grades. Some statistical research has shown a relationship between good grades and safe driving.

Hazard A specific situation that increases the probability of the occurrence of loss arising from a peril, or that may influence the extent of the loss. For example, accident, sickness, fire, flood, liability, burglary, and explosion are perils. Slippery floors, unsanitary conditions, shingled roofs, congested traffic, unguarded premises, and uninspected boilers are also hazards.

Indemnity Restoration to the victim of a loss by payment, repair, or replacement.

Insurable Interest Any interest a person has in a possible subject of insurance, such as a car or home, of such a nature that a certain happening might cause him financial loss.

Insurable Risk A risk which meets most of the following requisites: (1) The loss insured against must be capable of being defined. (2) It must be accidental. (3) It must be large enough to cause a hardship to the insured. (4) It must belong to a homogeneous group of risks large enough to make losses predictable. (5) It must not be subject to the same loss at the same time as a large number of other risks. (6) The insurance company must be able to determine a reasonable cost for the insurance. (7) The insurance company must be able to calculate the chance of loss.

Loss Payee/Lien holder A person or entity with a legally secured insurable interest in another's property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.

Lapse Termination of a policy because of failure to pay the premium. In Life Insurance, the term refers to nonpayment before the policy has developed any nonforfeiture values. If it has, and the premium is not paid, it is said to have lapsed "except as to any nonforfeiture benefits that may apply."

Loss Generally refers to (1) the amount of reduction in the value of an insured's property caused by an insured peril, (2) the amount sought through an insured's claim, or (3) the amount paid on behalf of an insured under an insurance contract.

Loss Payee The party to whom money or insurance proceeds is to be paid in the event of loss, such as the lienholder on an automobile or the mortgagee on real property.

Market Value The price for which something would sell, especially the value of certain types of assets, such as stocks and bonds. It is based on what they would sell for under current market conditions. For example, common stock market value would be the price of the stock as of a specified date.

Master Policy The policy contract issued to an employer or other entity authorized by state law for a group insurance plan. See also the first definition of Certificate of Insurance. (2) A Property Insurance policy issued to an insured who can issue certificates of coverage to cover the property of others.

MVR - Motor Vehicle Record A motor vehicle record, also referred to as DL printout, or MVR, contains information obtained from an individual's driver license application, abstracts of convictions and accidents.

Named Insured Any person, firm or corporation designated by name as the insured person(s) in a policy. Others may be protected by policy definition even though their names aren't on the policy, such as other drivers operating (with consent) the named insured's covered auto.

Notice of Cancellation Written notice by an insurer of intent to cancel insurance, or written notice by an insured requesting cancellation.

Personal Injury Protection The name usually given to no-fault benefits in states that have enacted mandatory or optional no-fault auto insurance laws. Personal Injury Protection (PIP) usually includes benefits for medical expenses, loss of income from work, essential services, accidental death, funeral expenses, and survivor benefits.

Property Damage Liability Insurance Protection against liability for damage to another's tangible property, including loss of use. Although this coverage is different than liability for bodily injury to another person, Bodily Injury and Property Damage Liability protection are generally written together.

Rate The cost of a given unit of insurance. For example, in Ordinary Life Insurance, it is the price of $1,000 of the face amount. In Disability Income Insurance, it is usually the price per $10 or per $100 of monthly benefits. In Property Insurance, it is the rate per $100 of value to be insured. The premium, then, is the rate multiplied by the number of units of insurance purchased.

Rescission (1) Repudiation of a contract. A party whose consent to a contract was induced by fraud, misrepresentation or duress may repudiate it. A contract may also be repudiated for failure to perform a duty. (2) The termination of an insurance contract by the insurer when material misrepresentation has occurred.

Rider An attachment to a policy that modifies its conditions by expanding or restricting benefits or excluding certain conditions from coverage.

Split Limit Any insurance coverage which is expressed in different amounts for different types of losses. For example, automobile liability of 50/100/50 means bodily injury limits of $50,000 per person, $100,000 per accident, and a property damage limit of $50,000 per accident.

Subrogation Clause A clause giving an insurer the right to pursue any course of action, in its own name or the name of a policy owner, against a third party who is liable for a loss which has been paid by the insurer. One of its purposes is to make sure that an insured does not make any profit from his insurance. This clause prevents him from collecting from both his insurer and a third party.

Total Loss A loss of sufficient size so that it can be said there is nothing left of value. The complete destruction of the property. The term is also used to mean a loss requiring the maximum amount a policy will pay

Underwriter A technician trained in evaluating risks and determining rates and coverages for them. The term derives from the practice at Lloyd's of each person willing to accept a portion of the risk writing his name under the description of the risk.

Underwriting The process of selecting risks and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify.

Uninsured Motorists Bodily Injury Uninsured motorists bodily injury coverage (which must be offered in most states) pays for a covered person's bodily injuries of which an uninsured or hit-and-run motorist is legally liable, but unable to pay.

Underinsured Motorists Bodily Injury Underinsured motorists bodily injury coverage (which must be offered in most states) pays for a covered person's bodily injuries of which a person with not enough insurance is legally liable.

Uninsured Motorists Property Damage Uninsured Motorist Property Damage Liability coverage pays for property damages caused by uninsured drivers.

VIN Vehicle Identification Number A Vehicle Identification Number is a 17-digit alpha-numeric code that provides valuable information concerning the vehicle's serial number, make, model, options, and year in official records (like a Social Security number for your car).

Waiver (1) A rider waiving (excluding) liability for a stated cause of injury or sickness. (2) A provision or rider agreeing to waive premium payments during a period of disability of the insured. (3) The act of giving up or surrendering a right or privilege that is known to exist. In Property and Liability fields, it may be effected by an agent, adjuster, company, employee, or company official, and it can be done either orally or in writing.