Insurance, decoded

$25/$50/$15

Accident

Accident-Only Policies

Actual Cash Value (ACV)

The depreciated value of your vehicle at the time of a claim — what it would sell for, used.

Actuarial Report

Actuary

Additional Interest Insured

Adjuster

Administrative Expense Charge

Advance Premiums

Agent

Aggregate

AM Best Rating

A measure of an insurance company's financial strength and ability to pay claims.

Anti-Theft Device

Application

Appraisal

Assigned Risk Plan

At-Fault Accident

An accident the insurance company determines was caused by your negligence or actions.

Attach

Automobile Liability Insurance

Binder

Bodily Injury

Bodily Injury Liability Coverage

Cancellation

Claimant

Collision Coverage

Pays for damage to your own vehicle from a collision, regardless of who caused it.

Combined Single Limit

Comprehensive Coverage

Pays for damage to your vehicle from non-collision events — theft, vandalism, weather, fire, hitting an animal.

Comprehensive Coverage (for physical damage other than collision)

Continuously Insured

Contract

Coverage Limits

The maximum amount your insurer will pay on a covered claim.

Declarations Page

The summary front page of your insurance policy showing coverage limits, deductibles, premium, and effective dates.

Deductible

The amount you pay out of pocket before your insurance coverage kicks in on a claim.

Dollar Threshold

Driver Education Credit

Driver Improvement Course

Driver Status

Effective Date

Endorsement

A modification or add-on to your insurance policy.

Exclusions

Extended Coverage

Fair Market Value

Financial Responsibility Law

Free Look Period

Full Coverage

An informal term for a policy that includes liability, comprehensive, and collision coverage.

Gap Insurance

Pays the difference between your vehicle's actual cash value and your loan or lease balance if the vehicle is totaled.

Garaging Location

Grace Period

Indemnity

Independent Agent

Insurance Claim

A request to your insurer to pay for damage or losses covered by your policy.

Lapse

Liability Coverage

The portion of an auto policy that pays for damage or injuries you cause to others.

Liability Limits

Loan/Lease Payoff Coverage

Loss

Loss History

McCarran-Ferguson

Medical Payments (MedPay)

Pays for medical expenses for you and your passengers after an accident, regardless of fault.

Medical Payments and Personal Injury Protection (PIP)

Medical Payments Coverage

Minimum Coverage

The least amount of insurance a state legally requires drivers to carry.

NAIC Complaint Index

A measure of how many complaints an insurer receives relative to its market share.

Named Driver Exclusion

Named Driver Policy

Named Insured

No-Fault Insurance

Non-Economic Benefits

Non-Owners Policy

Non-Renewal

When an insurer chooses not to renew your policy at the end of its term.

Occasional Driver

Payee

Personal Injury Protection (PIP)

Personal Injury Protection (PIP)

Pays for medical expenses and lost wages for you and your passengers after an accident, regardless of fault.

Policy Period

Policy Renewal

When your insurance policy reaches its end date and is extended for another term.

Premium

The amount you pay your insurance company for coverage, typically monthly, every six months, or annually.

Primary Residence

Primary Use

Principal Driver

Property Damage Liability Coverage

Proximate Cause

Rate

Refund

Reinstatement

Rental Reimbursement Coverage

Replacement Cost

Rescission

Rider

Rideshare Coverage

An endorsement that extends personal auto coverage to driving for Uber, Lyft, or other rideshare platforms.

Roadside Assistance Coverage

Rule of 78

Rule of Anticipation

Salvage Titles

Second Named Insured

Split Limit

SR-22

SR-22

A certificate of financial responsibility your state may require after certain violations.

Subrogation

The process by which your insurer recovers money from the at-fault party after paying your claim.

Surcharge

Telematics

Programs that use a device or app to track your driving habits in exchange for discounts.

Third Party

Threshold

Tort

Totaled (Total Loss)

When repair costs exceed the vehicle's actual cash value (or a state-specific threshold), the insurer declares it a total loss.

Towing and Labor Coverage

Underinsured Motorist Coverage (UIM)

Underwriter

Underwriting

Uninsured and Underinsured Motorist Coverage

Uninsured Motorist Coverage

Pays for your injuries and damage if you're hit by a driver with no insurance.

Uninsured Motorist Coverage (UM)

Uninsured/Underinsured Motorist Property Damage Coverage

Vehicle Identification Number (VIN)

Verbal (or Descriptive) Threshold