Insurance Glossary

Actual Cash Value 
A decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to help determine the actual cash value of property at the time of loss.

Adjustable Premium 
These types of insurance policies feature variable premium rates that can change based on several factors, as outlined in the established policy agreement.

Bodily Injury Liability 
Pays damages for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense. Coverage is subject to your policy terms, limits and conditions.

Business Auto Policy 
A type of commercial car insurance that offers more extensive coverage that can be applied to commercial vehicles as well as employee-owned vehicles that are being used for business purposes

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Claims Evaluation 
Claims evaluation is an important part of the insurance claims process. This includes an investigation, policy review, damage assessment and settlement determination.

Deductible 
The amount the insured is required to pay in a loss before any payment is due from the insurance coverage. The insurance company pays the remainder of each covered loss up to the policy limits.

Hired Auto Coverage 
Provides liability coverage for a vehicle that you do not own and is not listed on your policy, but it is leased, rented, borrowed or hired.

Auto Repair Authorization 
Auto repair authorization is a typical repair process that may involve your insurance carrier.

Auto Warranty 
This discusses what an auto warranty is and how it is different from auto insurance.

Car Insurance Deductible 
Find out what a car insurance deductible is and how it works.

Car Replacement Cost 
Understand car replacement costs and how they may impact your insurance claim.

Cargo Insurance 
If you think you know what cargo insurance is, youre probably right. Discover different types, coverages, and exclusions in our glossary.

Claims Adjustment Expenses 
Discover what claims adjustment expenses are and how they may impact the insurance process.

Continuous Auto Coverage 
Learn what it means to have continuous auto insurance coverage.

Driving Record 
What does a driver history report or driving record entail? Where can you get one? Discover the answers to your questions in our glossary.

Estimated Premium 
Learn about what an insurance premium is and how insurance companies may estimate it.

Excess Wear Tear 
Find out what is considered excess wear and tear on a vehicle.

First Notice of Loss 
Learn what a first notice of loss is and how it may affect your auto insurance.

First Party Coverage 
This page discusses what first-party coverage is and a few distinct types of first-part coverage.

Grace Period 
Learn what a grace period is for a car insurance policy and what purpose it may serve.

Hit and Run 
Learn what a hit and run is and how you can file a hit and run insurance claim.

Household Driver 
Find out who may qualify as a household driver on your insurance policy.

Joint Policyholder 
A joint policyholder typically refers to two or more people who live at the same address and own a single auto insurance policy.

Lapse in Coverage 
This page helps to explain what lapse in coverage means.

No Fault Insurance Coverage 
This glossary page discusses no-fault insurance is and how it may be different from other auto insurance coverages.

Non Owner Car Insurance 
Looking for non-owner car insurance? Compare rates and get a fast, free non-owner car insurance quote today to insure yourself on the road.

Phantom Vehicle Accident 
Learn why phantom vehicle accidents may not be covered by insurers and what to do if youre affected.

Policy Limit 
This glossary page can help you understand what policy limits are.

Property Damage Liability Coverage 
If you damage someones property while behind the wheel, property damage coverage makes a big difference. Learn what you need to know.

Rental Car Insurance vs Rental Reimbursement 
This page breaks down the difference between rental reimbursement and rental car insurance.

Safe Driver Discount 
A safe driver discount may save you money on your auto insurance premium.

Salvage Retention Title 
This glossary page can help understand what a salvage retention title is.

Total Loss 
This discusses what a total loss means from a car insurance perspective.

Umbrella Policy 
Learn more about umbrella policy options, including how umbrella insurance works.

Underwriting 
This glossary page can help understand what underwriting is.

Vehicle Replacement Cost 
The difference between car replacement cost and actual cash value may be helpful for insurance buyers.

Waiting Period 
When looking for a new vehicle insurance policy, consider the auto insurance waiting period.

Disclaimer:

This material is for general informational purposes only. Any products, services, and discounts referenced herein are not available in all states or from all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.

The content is provided on an “as is,” and “as available” basis without representation or warranty of any kind whatsoever. The materials available are for informational purposes only and not for the purpose of providing legal advice. You should contact legal counsel to obtain advice with respect to any particular issue or problem. Use of this website or any of the links contained within the website does not create representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.