CAR INSURANCE GLOSSARY

Here are a few simplified Auto Insurance terms for you:

Additional Interest Insured- refers to another person/company liable for any accident involving existing insured/insured vehicle

BI/PD Bodily Injury/Property Damage Liability Coverage- refers to minimum amount due on accident; normally, 25/50/10 means $25,000 for bodily injuries to each person/$50,000 for total bodily injuries /$10,000 for damages to property in an accident.

Bodily Injury Liability- pays an insured person for death, body injuries through an accident by your vehicle, or while driving somebody else?s vehicle, also covers your legal expenses

Collision- covers losses of your covered vehicle colliding with another vehicle, including non-owned and rented vehicles. Exceptions are company vehicles.

Continuously Insured- when you have constant insurance coverage from a single or more than one insurer

Comprehensive- Covers damages to your vehicle due to non-collision factors like flood, fire, mob fury, theft, and storm. In theft cases, additional coverage of transportation and loss of use expenses.

Declarations Page- Report from insurance company listing types, limits, and costs of each coverage for specified vehicles

Deductible- Your share of loss you agree to pay, normally higher deductible lowers premium.

Driver Status Information regarding driver as to whether rated or listed on policy

Garaging Location- ZIP code of parking or garaging area of your vehicle when not in use, normally your residence

Good Driver- Driver with (a) only one DMV point, or (b) has only one at-fault accident in last three years and no vehicle-related crimes in last seven years.

Limits- Maximum amount insurance company will pay to insured.

Loan Lease Payoff- Coverage available on current models of vehicles covering comprehensive, collision, and loss payee

Medical Payments Coverage- Pays all persons medical and funeral expenses due to vehicle accident, irrespective of whose fault led to accident. Normally not available with Personal Injury Protection Benefits

Named Insured- Name of first person against whom insurance policy is issued

Occasional Driver- Person who is not main driver of vehicle

Policy Expiration Date- Date on which your current insurance policy expires, normally found on insurance identification card, current Declaration page, or recent cancellation notice

Policy Term- Existence period of policy such as semi-annual or annual policies

Primary Residence-Your residence for majority period of your policy

Primary Use - Main utility of your vehicle such as for (a) commuting to work/school, (b) Business purposes, (c) work on farm, orchard, or ranch, (d) use by artisans, or (e) pleasure rides.

Principal Driver - Main driver of vehicle

Property Damage Liability- Pays when insured person is legally responsible for damaging other?s property through your vehicle, also covers legal expenses if sued

Rental Reimbursement- Pays for your car rental expenses when you have collision or comprehensive coverage, normally to set maximum limits each day

Second Named Insured- Insurance agents and companies may ask for name of second person to include as insured in your policy, has same coverage as first insured

SR-22- Documental proof of financial responsibility required by court or state law for persons violating certain traffic rules

Towing and Labor- Repays emergency towing charges of your vehicle, subject to limits in policy

Underinsured Motorist Bodily Injury Coverage- Provides coverage to you, family members, and other occupants against bodily injuries and death due to accident by driver with low insurance

Uninsured Motorist Property Damage- Normally available as an alternative for Collision coverage in some states; covers damages to your vehicle or personal property due to negligent driving of other driver, who does not have any insurance. Such coverage is not available in all states

VIN- Vehicle Identification Number of your vehicle, normally present on driver?s side of dashboard. It combines seventeen letters and numbers to identify model, make, and year of your vehicle.

CAR INSURANCE GLOSSARY

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