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:
When it comes to car insurance, 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:
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 homeowners insurance 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. Get a car insurance quote with the AARP ® Auto Insurance Program from The Hartford 1 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.
Last Updated: September 22, 2023 Additional disclosures below.© 2024 The Hartford
Summaries of coverages and policy features are for informational purposes only. In the event of loss, the actual terms and conditions set forth in your policy will determine your coverage.
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The AARP Auto Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA, by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MA, by Trumbull Insurance Company; and in PA, by Nutmeg Insurance Company and Twin City Fire Insurance Company. The AARP Home Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA by Property and Casualty Insurance Company of Hartford; in WA, by Trumbull Insurance Company; in MA, by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, and Hartford Accident and Indemnity Company; and in PA, by Nutmeg Insurance Company. Home product is not available in all areas, including the state of FL. Savings, benefits and coverages may vary and some applicants may not qualify. The Program is currently unavailable in Canada and U.S. Territories or possessions.
1 In Texas, the Auto Program is underwritten by Redpoint County Mutual Insurance Company through Hartford of the Southeast General Agency, Inc. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by Redpoint County Mutual Insurance Company. The Home Program is underwritten by Hartford Insurance Company of the Southeast.
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