Liability: Legal responsibility or obligation for the injury or damage suffered by another person.
Liability insurance: In most states, you are legally required to have a minimum of liability insurance, which is intended to restore the other driver, passengers and vehicle to their pre-accident condition. See also: Property Damage Liability and Bodily Injury Liability.
Lien holder: A person or organization, such as a bank or leasing company, with a financial interest in property up to the amount of money borrowed or still owed on the property.
Limits of Liability: The amount specified in your policy up to which the insurance company will protect you. Limits may apply to an individual accident and/or a specific period of time. Most states have laws that specify the minimum limit that must be purchased for each type of required insurance coverage.
LKQ (Like Kind and Quality): Refers to parts salvaged or "harvested" from a vehicle, often from one that was deemed a total wreck. This category commonly includes large body assemblies such as complete bumper assemblies or complete front ends, severed from the original vehicle from the windshield forward. While LKQ parts may offer a price-based alternative, the parts used from the salvage vehicle may have already been replaced with non-OE parts, or may be structurally compromised as a result of the collision. Other factors affecting the quality of these parts include unsuitable storage, hidden damage, or removal technique.
For more information on LKQ.
Loss: The amount an insurance company pays on a claim.
Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.
Loss Payee: A person or entity that is protected under the named insured’s auto policy. This is usually a lessor or a bank that loaned money to buy a car.