Glossary.
The terms you are likely to hear from lawyers and insurers, in plain words.
- Adjuster
- The insurance company employee who investigates a claim and decides what to offer.
- Comparative negligence
- A rule that lowers your compensation by your share of the fault. Some states bar a claim above a set share.
- Contingency fee
- A lawyer’s fee taken as a percentage of a recovery. No recovery, no fee.
- Demand letter
- A letter that sets out what happened, your injuries and costs, and what you are asking the insurer to pay.
- Liability
- Legal responsibility for causing the injury.
- Lien
- A claim on part of a settlement by someone who paid your bills, such as a health insurer or Medicare.
- Medical payments or PIP
- Optional auto coverage that pays your medical bills no matter who was at fault.
- Release
- The paper you sign to accept a settlement. It usually ends your right to claim more.
- Settlement
- An agreement to resolve a claim for an agreed amount, usually without a trial.
- Statute of limitations
- The deadline to file a lawsuit. Miss it and the claim is usually lost.
- Uninsured motorist coverage
- Part of your own policy that can pay when the at-fault driver has no insurance or too little.