Aggregate Limit:
The maximum amount that could be paid for a claim on an insured
vehicle, regardless of the number of people injured or the number of
items damaged.
Bodily Injury
Liability: Protects the insured as the owner or driver of a
vehicle for all sums, up to the policy limits, which the insured
becomes legally obligated to pay because of bodily injury to a third
party. This coverage also pays defense costs against legal actions.
Bodily Injury Liability limits are usually split; the first figure
defines payment limits to a single person per accident, the second
defines payment limits in total for all persons injured.
Collision Coverage:
Auto insurance that protects your vehicle against direct and direct
accidental loss by collision with another vehicle or fixed object.
Comprehensive
Coverage: Car insurance coverage that protects against
losses to your vehicle caused by something other than a collision.
This includes such perils as hitting an animal, vandalism, riots,
floods, wind and hail, fire, theft, and glass breakage.
Deductible:
A portion of an insured's loss that is not paid by car insurance. The
deductible is subtracted from the amount that the insurer would
otherwise be obligated to pay.
Direct Loss:
The immediate reduction in value arising from damage to property.
Earned Premium:
A portion of the auto insurance premium which represents coverage
already provided.
Full Glass Coverage:
If chosen, any comprehensive car insurance deductible would be waived
for glass claims. This option is not available in all states.
Hazard:
Anything that increases the chance of an automobile accident. (e.g.,
icy pavement, fog).
Liability:
This means that a person (or group of people) is legally responsible,
or liable, for the injury or damage suffered by another person (or
group of people).
Medical Payments:
Auto insurance coverage that pays up to a specific amount for
injuries sustained by you and covered persons in your vehicle,
regardless of who is at fault. Unlike Personal Injury Protection
(PIP) medical payments only covers medical expenses.
Motor Vehicle
Report: A report that lists moving violations (such as
speeding tickets) and serious violations that a driver has
accumulated in the past several years.
No Fault
Coverage/Personal Injury Protection (PIP) (BRB): These are
broadly used terms for most first-party benefits only in those states
that have this type of coverage. The extent varies by state, but it
generally pays for medical and rehabilitative expenses, work loss,
funeral expenses and replacement services incurred by you, members of
your family, passengers in your vehicle, and pedestrians injured by
your vehicle as a result of an accident.
Property Damage
Liability: Similar to Bodily Injury Liability but limited to
damage caused by you to another person's property, such as an auto,
fence, telephone pole, etc.
Quote: A
statement regarding the premium that will be charged for certain auto
insurance coverage.
Rental
Reimbursement: Available to drivers who chose comprehensive
coverage for their car. This coverage helps to reimburse expenses
that you may incur if you need to rent a car while your auto is being
repaired due to a covered accident or your covered vehicle is
temporarily disabled.
Stacking:
For an increased premium, stacking allows Underinsured or Uninsured
Motorists coverage to be multiplied by the number of vehicles on the
policy, when necessary, to pay a claim. Stacking is not available in
all states.
Towing and Labor:
This coverage helps to reimburse expenses you may incur if your car
is in an accident or becomes temporarily disabled and needs to be
towed to a repair shop. It is available for those drivers who have
chosen comprehensive auto insurance coverage.
Umbrella Policy:
A liability insurance policy that provides additional coverage to
extend beyond the limits stated in your car insurance policy.
Underinsured
Motorist Coverage: This coverage pays for your injuries when
a legally liable third party has insufficient limits to cover your
injuries. Underinsured motorist property damage protects your
property up to your policy limit for property damage that results
from an accident with a legally liable underinsured motorist or hit
and run driver. This coverage is not available in all states, is
sometimes subject to a deductible and can be rejected in writing by
the insured.
Uninsured Motorist
Coverage: Protects you and the occupants of your vehicle for
bodily injury up to your policy limit as a result of an accident with
a legally liable uninsured motorist or hit and run driver. Uninsured
Motorist Property Damage protects your property up to your policy
limit for property damage that results from an accident with a
legally liable uninsured motorist or hit and run driver. It is
available in some states and is sometimes subject to a deductible.
This coverage can be rejected in writing by the insured in some
states.
Vehicle
Identification Number (VIN): The VIN is the serial number of
a vehicle, usually found on the door frame or dashboard on the
driver's side. The number identifies specific characteristics of the
vehicle, including passive restraints.