As anyone who has purchased for auto insurance or filled an automobile insurance claim knows, auto insurance agents and companies use terminology all their own. Below is a list of definitions to give you the experience to close the gap. Now, online insurance quotes and dealing with claims will not have to feel like negotiating in a foreign language!
Anti-theft device: A device that prevents thieves or robbers from stealing your car. Some insurance companies offer a discount if you have one in your car.
Assigned risk insurance: In states that require insurance coverage for their drivers, it is a law that requires insurance companies to accept a certain number of high-risk drivers in their policies. These policies can be expensive, but they do exist.
Auto Replacement Coverage: Supplement that allows your entire vehicle to be completely repaired or replaced, regardless of cost to the insurance company.
Personal Injury Liability Coverage: Covers personal injury to another person if you caused an accident.
Folder: Temporary motor insurance that protects you until your new policy becomes effective.
Improvement: Parts damaged in an accident can be replaced by parts in better condition than the car already had, and the driver may be asked to pay the difference in cost.
Collision coverage: pay for damages or replacement of your car in case of an accident. Sometimes collision coverage is required by car lenders.
Comprehensive insurance: covers events not covered by collision insurance. For example: natural disasters, theft and vandalism.
Deductible: The amount you pay for an incident before your insurance policy begins. The higher the deductible, the lower the rate you pay.
Gap Auto Insurance: Covers the difference between what you still owe on your car and your actual cash value as totalized in a wreck.
Good Driver Plan: An incentive offered by some insurance companies to maintain a good driving record for a designated period of time. Each company has difference incentives, so read the terms of your online insurance quotes for details.
Lien: A claim on property as collateral for a debt owed.
Liability Insurance: Covers losses of people and property damaged by their negligence. This type of insurance is a minimum required in many states.
Passive restraint system: A safety system, such as an airbag or seat belts, which operates on its own to protect drivers and passengers from bodily injury. Some insurance companies give discounts for their presence in the car.
No-fault auto insurance: In some states, this type of policy replaces liability insurance. Covers damage to his own party or car, regardless of who was at fault. It allows for more timely medical care related to accidents. Sometimes, no-fault insurance comes with a limit to claims (as part of a limit of claims for damages).
SR-22 Car Insurance: If your license has been suspended or revoked, you will need an SR-22 auto insurance certificate. SR-22 is the proof of a liability car insurance policy.
Total Loss: When the cost of repairing a damaged car exceeds its actual cash value.
Uninsured Motorist Coverage: Covers you when the other party in an accident does not have liability insurance coverage to pay for damages to your car or body.