Liability Insurance , Glossary of Insurance

The price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft and other losses. Prices vary from company to company, as with any product or service.Premiums also vary depending on the amount and type of coverage purchased; the make and model of the car; and the insured’s driving record, years of driving and the number of miles the car is driven per year. Other factors taken into account include the driver’s age and gender,

 where the car is most likely to be driven and the times of day—rush hour in an urban neighborhood or leisure time driving in rural areas, for example. Some insurance companies may also use credit history related information. (See Insurance score )

AVIATION INSURANCE
Commercial airlines hold property insurance on airplanes and liability insurance for negligent acts that result in injury or property damage to passengers or others. Damage is covered on the ground and in the air. The policy limits the geographical area and individual pilots covered.


*Terms marked with an asterisk are from LOMA's Glossary of Insurance and Financial Services Terms. Copyright © 2002 LOMA (Life Office Management Association, Inc.). Used with permission from LOMA. If you wish to use the LOMA terms in the III glossary on your website, you must obtain permission from LOMA by contacting Mary Naismith at