Automobile Claim Glossary

Accident Forgiveness

Our Accident Forgiveness auto policy feature means that we will waive the standard premium surcharge and up to $500 of your Collision or Comprehensive Coverage deductible for your first accident. And if you enjoy a Safe Driver discount, you’ll keep that too.1


An adjuster is the representative in our office who is assigned to process your claim, including but not limited to verifying coverage, investigating liability, processing payments, etc.


An appraiser is a representative who is licensed to inspect and estimate the damages to your vehicle.


This is the portion of risk you select to retain when there is a loss. In other words, you agree to cover a specific amount of the damages when there is a covered loss and Electric Insurance agrees to cover the remainder of the cost. For example, if your deductible is $500 and the repair cost of your vehicle is $2,000, you agree to cover the first $500 and Electric Insurance agrees to cover the remaining $1,500.

Total Loss

Damage to your vehicle exceeds the reasonable cost to repair it or the cost of repair exceeds the vehicle’s value.


First Notice of Loss Report

Personal Injury Protection (PIP)

May pay for an insured’s medical treatment, lost wages, or essential services as a result of an accident injury regardless of who caused the accident; PIP coverage is subject to the terms, limits, and conditions of your policy and not available in all states

Medical Payments (MP)

Pays medical expenses to an insured and/or passengers as a result of an accident; is subject to the terms, limits, and conditions of the policy

Bodily Injury (BI)

Pays damages for bodily injury or death resulting from a car accident involving others in which you are at fault and, in most cases, provides you with a legal defense; it is subject to the terms, limits, and conditions of the policy.

Subrogation (“Subro”)

Is the process by which your insurance company pursues recovery of funds paid, including any outstanding deductible, from the at-fault party.

Market Valuation

Market valuation is based on the current average cost of three other comparable vehicles of the same year, make, and model located as close to your residence as possible. Other factors such as mileage, condition, and vehicle options or trim packages are all considered when determining the value.

The valuation report adjusts the sale prices for each vehicle compared to your own vehicle. For example, if one of the vehicles on the valuation report has higher mileage than your own vehicle, then an additional amount is added to the sale price to adjust for the difference; this ensures the closest comparison possible.

1. Terms and conditions apply. You must meet the following criteria in order to qualify for accident forgiveness: all drivers on your current policy must be accident-free for five years prior to the policy effective date; the policy must have Bodily Injury liability limits of at least $100/300; you must have a credit score of at least 700; and Collision coverage must be on at least one vehicle on your policy.
Product, service, program, credit, and discount availability and limits vary by state. The information provided on this site is provided for informational purposes only and is not a full explanation of products, services or coverage. For more information, please contact Electric Insurance Company at 800.342.5342. If there are discrepancies between the information on this site and the policy, the terms in the policy apply.