Insurance Terms related to Auto Insurance, Motorcycle Insurance, and Scooter Insurance
Replacement cost minus depreciation. Also known as
market value. This amount represents the dollar amount you would expect to
receive if the item was sold.
The person or entity, other than the named insured or second named insured, who has an interest in being protected under the liability portion of the contract.
Parts and accessories used in the repair or enhancement of an automobile.
People who sell and service insurance policies for a commission.
Their responsibilities often include maintaining documents and signatures
in customer files, making policy changes and providing coverage counseling.
Discount given by some insurance companies to vehicles
with driver and/or passenger side airbags.
Anti-lock Braking System (ABS)
Safety system which prevents the wheels on a motor vehicle from locking while braking. Some companies allow a discount for vehicles with ABS.
General term for vehicle safety system that deters
vehicle theft. Ranges from manual alarms to serial number etchings to
Lojack systems.
Inspection done by outside party to determine vehicle, home or
property value.
A state insurance plan not actually provided by the
state but assigned to a company writing within the state for generally
higher risks. The company must accept a portion of these risks.
The party that is legally liable for the damages in an accident.
A form of insurance that protects against losses from
owning and operating an automobile.
The theft of a vehicle which is usually protected under
comprehensive coverage.
A temporary insurance agreement used when a policy cannot become
issued immediately.
Bodily Injury Liability Coverage
Coverage that protects insured if while driving their vehicle causes injury to someone.
The termination of a policy contract before its expiration.
A form of insurance that protects against losses from owning and operating an automobile.
The insurance company or insurer.
Any request for payment under an insurance contract.
The person responsible for settling a claim.
The person presenting a claim.
Comprehensive Loss Underwriting Exchange report which
provides claim history information from multiple insurance companies.
Covers losses to the insured vehicle caused by
collsion with another object or overturning.
Insured with no lapse in coverage.
In a loss, an insurance company asks for multiple estimates on repair.
Portion of an auto insurance policy that covers damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods and riots) and theft.
Vehicle with custom parts and equipment which require
separate coverage.
Loss or harm to person or property.
Money that one because responsible for paying another party.
Factory installed or add-on kits; a possible
discount in some states.
Generally the first page of an insurance policy.
Contains name of the insured, the insurer, effective dates of the policy,
information about the property being insured, coverage limits, and general
specifics pertaining to the policy.
A specific amount the named insured must pay before insurance
benefits begin.
Course taken by insured to improve driving skills
sometimes ordered by the court. Varied by state, discounts are offered.
A decrease in value of any property over a period of time
resulting from use, wear and tear.
Deduction or subtraction from a price.
Course offered by state or school that offers skills on
driving defensively, driving safely or driving in general.
Course offered to improve driving skills. Usually court ordered.
Driving under the influence of alcohol (driving while intoxicated, drunk driving, drinking and driving, drink-driving) or other drugs, is the act of operating a vehicle after consuming alcohol or using drugs. A DUI usually results in a license suspension and an SR22 may be required to drive.
Driving while intoxicated (driving under the influence of alcohol, drunk driving, drinking and driving, drink-driving) or other drugs, is the act of operating a vehicle after consuming alcohol or using drugs. A DUI usually results in a license suspension and an SR22 may be required to drive.
Insurance needed after a DUI. Usually referred to as an SR22.
Insurance needed after a DWI. Usually referred to as an SR22.
Policy contract start date. A policy expires at 12:01 a.m. Not to be confused with 12:01 pm (or noon).
Electronic Funds Transfer (EFT)
A payment option that provides payment of
monthly insurance premiums through automatic withdrawal from a checking
account.
Emergency Road Service Coverage
Optional coverage that applies only to
non-accident related disablements such as battery failure, water
entrapment, flat tire, or out of gas.
A change made to a policy.
Approximate cost of repair.
Driver whose information is listed on policy but driver record
information does not affect premium. Excluded drivers are not covered if
involved in an accident while operating a vehicle.
Policy contract end date. A policy expires at 12:01 a.m. Not to be confused with 12:01 pm (or noon).
Person who assesses damage done to a property that is
covered by an insurance company.
Vehicle which is not owned outright by the insured.
Often owned by a bank institution or private lender.
Full coverage isn't technically a "legitimate" insurance term. It simply means that you have all coverages that are required by your state and usually includes liability, property damage, comprehensive and
collision. Full coverage is required when you finance or lease a vehicle.
Place at which vehicle is garaged. Insurance companies
use garaging locations as a premium factor.
Pays for the difference of what the vehicle is worth versus
how much is owed.
Discount offered to students with good grades. Usually a 3.0 or better.
Discount offered to drivers with good driving
records.
A situation which poses a level of threat to life, health, property or environment.
Discount given to insureds who own homes.
Insurance that protects homeowners from losses to
their home, personal property, and some types of damage or injury to others
for which the homeowner is liable.
The act of providing compensation for a loss with the
intent to restore an individual or entity to the approximate financial
institution prior to the loss.
A principle of insurance which provides that when a loss
occurs, the insured should be restored to the approximate financial
condition prior to the loss.
An individual who estimates losses for a company who
is not employed by the company.
A review of property for damage prior to insuring it.
Exists when an insured would suffer a financial or
economical loss as the result of damage to a property or bodily injury.
A system in which pools of people who have similar risks
exchange payment for premium for reimbursement on their covered losses.
The act of falsifying insurance information to obtain a
payment that would not otherwise be made.
A document that shows proof of insurance.
Ratings used for underwriting purposes such as consumer
payment history, bankruptcies and open accounts.
A person covered by an insurance policy.
A company that provides insurance.
A vehicle rented under a long term contract. Insurance is
required by company who retains ownership.
Person who handles accident investigations.
Coverage which provides payment by policyholder due
to bodily injury or property damage.
Organization with financial interest in the property. This is usually a bank or credit union.
Maximum amount an insurance company will pay for
liability coverage.
Coverage pays off lease if total loss exists.
Damage to person or property.
Compensation to a third party interest for financial consequences resulting from the inability to use a property due to accident related damage.
Discount given to married couples.
Person who oversees medical payments after claims.
Coverage pays medical payments for injuries after an accident.
Knowingly giving false information.
Record of violations and accidents a driver
has in the past few years. Varies upon state.
A form of insurance that protects against losses involving motorcycles.
Motorcycle Safety Foundation (MSF)
Nonprofit organization which teaches
motorcycle safety, research and awareness. Some companies offer discounts.
Discount offered when more than one vehicle is listed
on a policy.
Discount offered when more than one driver is
listed on a policy.
Discount offered to policy holders when more than one policy is purchased from an insurance company. Some times it is beneficial to purchase auto insurance and home insurance with the same insurance company.
Policy contract holder.
National Insurance Crime Bureau (NICB)
A nonprofit organization whose
members investigate insurance crimes.
Failure to excercise the care that is expected of a reasonable person in similar circumstances.
Pays for medical treatment and lost wages regardless of who was at fault.
Termination of a policy by insurer during the renewal period.
Driver who is not the principal driver of a vehicle.
A condition or event which causes injury or damage during the policy period.
Discount given to insureds who opt to manage their policies via phone or online.
Passive Restraint System (Air Bags)
A safety system that activates automatically in the event of an accident.
Discount for paying policy premium in full at the beginning of a policy period.
Most companies offer several payment options providing different installment periods.
A hazard that can cause loss.
Coverage that pays for medical treatment and lost wages regardless of who is at fault.
Property that is not land or connected to land or real estate.
Coverages damage to covered vehicle including collision with another vehicle, fire, vandalism and theft.
Contract between insurance company and the insured.
Any change made to a policy during the policy period.
Person who maintains ownership of a policy. Also known as Named Insured.
State of a vehicle before an accident or perilous event.
Amount an insured pays for coverage for a specified period of time.
First layer of insurance on common types of losses.
What vehicle is customarily used for such as pleasure, commute, business, or farm.
A statement made regarding the extent of a claim.
Identification card used to prove coverage.
Property Damage Liability Coverage
Coverage which pays to damage to someone else's property in the event of an accident in which you are at fault.
A statement of premium based on specific information one has provided to insurance company.
The date on which your insurance policy expires. Insurance policies renew and expire at 12:01 a.m.
A discount given to insureds for renewing with the same insurance company.
An optional coverage that helps pay for rental vehicle costs while vehicle is being repaired.
Provides protection from losses in a rental home.
Parts used to replace damaged parts of a vehicle - usually used or new based on vehicle's age and condition.
On a motorcycle policy, a person who operates the insured motorcycle.
Coverage which assists in non-accidental incidents such as a flat tire, locked keys in car, or dead battery.
Certificate mandated by the state to verify that a person maintains continuous coverage. Also known as a certificate of Financial Responsibility (CFR)
Issued to vehicles deemed a total loss.
In umbrella insurance, self insured retention is similar to a deductible in other types of insurance.
Coverage provided for scooters.
Insurance carrier that helps fight fraud through investigation.
A process of payment recovery.
Supplement/Supplemental Estimate
Used to cover damage not included in original estimate.
The unlawful taking of property with no intent to return it.
A person with an interest in an agreement who is not a party to the agreement.
Claims for injury or damage to a property of the third party's interest.
Property that is deemed too damaged to repair.
Coverage which reimburses towing costs.
Coverage which provides limits of liability above the limits of your homeowner or automobile policy.
The process an insurance company goes through to determine whether or not it will provide coverage for an applicant.
Provides coverage to an insured against an uninsured driver.
Underinsured Motorist Coverage
Provides coverage to an insured against a driver who is not fully insured.
Uninsured/Underinsured Motorist Property Damage Coverage
Provides coverage the property of an insured against a uninsured or underinsured driver.
Destruction or defacement of a property.
Vehicle Identification Number (VIN)
A 17 digit number assigned to each vehicle manufactured in the United States after 1980. The number is used for identification purposes and is visible on the dashboard when viewed from outside the car. The numbers identify make, model, and year.
Plan providing extended coverage the in event of a loss.
