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glossary

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terms that start with ‘n’ or ‘o’

Named peril

A named peril is a damage/loss risk you specifically list on your insurance policy. Named peril insurance specifies the threats you want your property protected against, as opposed to open peril insurance, which guards against a general list of risks that you do not specify.

See also: peril, open peril

Related links

Home insurance quote
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Named insured

See primary policyholder.


National Credit File

The National Credit File provides objective consumer information regarding the financial history of an individual. Information contained in this report is often used to calculate insurance scores.


Natural disaster insurance

Natural disaster insurance is supplemental coverage that provides protection if your insured property is damaged or destroyed by a naturally occurring catastrophe, such as a hurricane, flood, tornado, avalanche, or mudslide.

See also: act of God

Related links

Homeowners insurance quotes
How to disaster-proof your insurance


No-fault insurance

No-fault insurance often includes or requires personal injury protection coverage, which can help pay for a policyholder's medical-related expenses after a car accident, regardless of fault. In a typical no-fault claim, each insured party files a claim with their own insurer without waiting for the assignation of fault.

No-fault insurance aims to help injured drivers and passengers get medical care as swiftly as possible and does not apply to property damage.

Each no-fault state has a monetary or verbal threshold that specifies a certain level of damage that, when surpassed, can allow an injured party to sue an at-fault driver.

See also: personal injury protection, monetary threshold, verbal threshold


No-fault states

In no-fault states, insurance companies are legally required to pay their policyholders' covered medical-related losses after an accident, regardless of fault.

Some no-fault states also restrict the right to sue for damages.

There are currently 12 no-fault states (although no-fault can be declined in some): Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

See also: personal injury protection


Non-passive alarm

A non-passive alarm is a type of car alarm that has to be manually activated each time you leave your car. If someone attempts to open your car, the alarm sounds, and the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may qualify for a car insurance discount if your car is equipped with such an alarm.

Related link

Car insurance discounts


Non-stackable insurance

Non-stackable insurance doesn't allow a policyholder to combine the amounts of uninsured and/or underinsured motorist coverage for each covered vehicle. For example, if you have a stackable insurance policy that insures 3 cars, each of which is insured with $10,000 of uninsured motorist bodily injury coverage, you could receive up to $30,000 for covered injuries in a single incident with an uninsured driver.

Conversely, a non-stackable insurance policy with $10,000 of uninsured motorist bodily injury coverage will pay up to $10,000 for applicable injuries or expenses per incident, regardless of how many cars are covered.

States allowing insurance stacking may still permit companies to include language in their policy contracts that deems limits non-stackable.

See also: stacking


Online insurance

See direct auto insurance.


Open peril

Open peril (also known as all-risk) is property insurance that protects your things from any and all types of damage, except those specifically named on your policy.

See also: named peril, peril

Related link

Take inventory of your possessions for more effective insurance


Original equipment manufacturer

Original equipment manufacturer (also known as OEM) refers to replacement vehicle parts made by the same manufacturer that produced the car's original part. For instance, if your brake pads need to be replaced, and you want to use OEM parts, then your repair shop will need to find brake pads made by the same manufacturer that produced your car's original pads.

See also: aftermarket parts


Out-of-pocket expenses

Out-of-pocket expenses are what you pay in addition to what your car insurer pays when you file a claim.

These are typically the result of the deductibles and coverage limits you choose. For example, if you carry a property damage liability limit of $25,000 and you get into an at-fault accident that causes $30,000 worth of damage to someone else's property, you may incur out-of-pocket expenses of $5,000, in addition to the deductible.

See also: deductible, liability coverage

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Finding the right coverage
Why the cheapest car insurance isn't always best