RENTAL REIMBURSEMENT COVERAGE: Pays for your rental car while your car is getting repaired. RISK: The likelihood that your car will be damaged. SECONDARY INSURANCE: Insurance that kicks in if the primary insurance doesn’t cover all expenses. For example, if you loaned your car to a friend who crashed it, your insurance would cover the accident up to the limits, and then your friend’s insurance would be the secondary insurance, covering the rest. STATED AMOUNT COVERAGE: Often used for collector cars, sets a limit on the amount the company will pay you in case of accident or loss. It also allows them to pay the actual cash value if they determine that’s less than the stated amount in the policy. SUBROGATION: Transferring your rights so the other driver’s insurance company pays your insurance company. This may or may not cover your deductible. If it does, it can be a lengthy process that last at least six months. THEFT INSURANCE COVERAGE: Separate coverage in case of theft. (Theft is already covered if you have comprehensive insurance.) THIRD PARTY: How your insurance company refers to everyone involved in
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