What Is Indemnification?
If you look through your insurance policy, you’ll come across some auto insurance terms
that may be confusing, like “indemnification” and “indemnity.” Here's what they mean:
- Indemnification is an agreement where your insurer helps cover loss, damage or liability incurred from a covered event.
- Indemnity is another way of saying your insurer pays for a loss, so you don’t have financial damages.
What Does Indemnity Mean in Terms of Auto Insurance?
When it comes to seguro para autos
, indemnity means that your insurer, like The Hartford, helps cover costs you’re required to pay following an accident. Your auto insurance company
indemnifies you from losses by shifting financial responsibility.
Let’s say you’re at fault for a car accident that damaged your car and injured the other driver. The driver ends up suing you for their medical costs. Your car insurance company indemnifies you and:
- Pays to repair their vehicle
- Helps pay their attorney fees
- Covers any settlement or judgments from the lawsuit
Without car insurance and an indemnification provision, you’d have to pay these costs out of pocket.
Examples of Indemnity Applied to Insurance Claims
Even if you’re involved in an accident that you’re not at fault for, the indemnity clause helps protect you from financial loss. For example, if another driver rear-ends your car, your insurer indemnifies you and helps cover your repair bill and medical treatment. Your insurer will also likely try to get the other driver’s insurance company to reimburse them for the claim costs. This is a process known as auto subrogation
You don’t have to get into an accident with another driver for indemnity to apply to your insurance claim. Maybe you swerved off a wet road and crashed into someone’s mailbox, or hit an animal, like a deer. In both of these examples, your insurer indemnifies you and helps pay to repair the property damage and damage to your car.
Indemnification clauses aren’t just common in car insurance policies. You’ll also find them in your seguro de viviendas
policy. Although it’s a different policy, it works the same way. If a tree falls on your roof or a fire burns down your home, your homeowners insurance company indemnifies you and helps cover your repair and rebuilding costs.
Insurance terms can get complicated. But The Hartford is here to help make them simple. Our team can help you understand your policy and how it works. Obtenga una cotización de seguro para autos
with the AARP®
Auto Insurance Program from The Hartford1
today or call 888-546-9099
to speak with one of The Hartford’s specialists about indemnification and how we can help protect you out on the road.
Última actualización: 22 de septiembre de 2023
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