Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Car Insurance Terms and other Car Insurance topics.

What is indemnity as it applies to car insurance location?

Auto Insurance Definitions: Indemnity

When a loss occurs relative to your car insurance policy, Indemnity is the principle that guarantees that in the process of restoring this loss, you will be returned to the financial condition that existed before the auto insurance loss occurred. In other words, you will be no better off and no worse off than before the loss occurred.

Comments

Nobody has commented on this tip yet. Be the first.

Ask a Question

Not finding the advice and tips you need on this Car Insurance Tip Site? Request a Tip Now!

Guru Spotlight

Christina Chan

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!