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Accidental Death Coverage

Accidental death coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. If someone who's covered dies from accident-related injuries, this type of auto insurance coverage may provide a payment to the insured's designated beneficiary.

Accident Forgiveness

In most states, if you've been an accident-free policyholder for five years (time varies per insurance company) you may qualify for this program. Accident forgiveness means that the insurance company will not add a surcharge to your premium after your next at-fault accident.

Actual Cash Value

You'll see this term a lot in auto insurance policies or if you ever have to file an auto insurance claim. That's because most auto insurance coverage reimburses you only for the actual cash value of your car. Your car's actual cash value is calculated by determining its original value, minus the amount your car has depreciated since you bought it.

Actuary

A statistician who computes insurance risks and premiums. Actuaries keep insurance companies profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.

Adjuster

An adjuster is the person who investigates and settles auto insurance claims.

Adverse Carrier

Term used to refer to the other party's insurance company.

Agent/Broker

Agents and brokers both sell and manage insurance for their customers. Agents are the authorized representatives of an insurance company or companies, while brokers are the authorized representatives of people looking for insurance.

Agreed Price

The price or cost of repairs agreed to by the Auto Damage adjuster or independent appraiser and the body shop representative.

Amendment

A change to the basic policy contract. An amendment alters the policy; an endorsement adds to it.

Anti-lock Braking System (ABS)

A computer-controlled high pressure system that assists the vehicle's normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.

Anti-Theft Recovery System

These systems consist of an electronic device that's installed in a concealed area of your car. If your car gets stolen, you can activate the device and it will emit a signal that can be used to locate your car. Such systems can be effective over a radius of several miles, depending on local geography. Ask your car dealer or nearby police department which brand of recovery systems are supported in your area. By installing an anti-theft recovery system, you may be eligible for an auto insurance discount.

Appraisal

Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.

Arbitration

A process of settling a dispute through an impartial party. It is used as an alternative to litigation.

Assigned Risk

A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners.

At-Fault

The party that is legally liable for the damages in an accident.

Auto Damage

The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement.

Auto Insurance

Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating an auto.

Auto Theft

The theft of an auto is a type of loss that is covered under comprehensive coverage.

Benefit

A benefit is the amount paid by an auto insurance company to you or your beneficiary when you file an auto insurance claim.

Binder

A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.

Bodily Injury

An injury sustained by a person.

Bodily Injury Liability Coverage

Bodily injury liability coverage protects you if you are held responsible for injuring someone in a car accident. This coverage helps pay for the injured party's medical expenses and lost wages. Bodily injury liability may also help pay your expenses in a related lawsuit. The amount covered is capped at the limits you select when you buy your auto insurance policy.

Business/Commercial Use

This classification means that you mainly use your car for business purposes (such as sales, service, and delivery calls) or work-related errands (like trips to the bank or post office), and other work-related driving. Commuting to and from work is not considered business use. Insurance companies don't currently provide auto insurance coverage for vehicles driven primarily for business/commercial use.

Cancellation

Termination of an insurance contract before the end of the policy period, by the insured or insurer.

Card ID Number

When you pay for your auto insurance policy with a credit or debit card, we ask for the card's ID number. This 3-digit number is printed on the signature strip of cards with the MasterCard, Visa, and Discover logos. American Express card ID numbers are 4 digits long, and are printed on the card's front side, immediately above the actual card number. To better safeguard your security, many businesses like ours are starting to ask for a card ID number. The card ID number helps ensure that no one is able to make a purchase without having an actual credit or debit card in their possession.

Carrier

The insurance company or insurer.

Catastrophe

A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.

Certificate of Satisfaction

A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.

Claim

An auto insurance claim is a policyholder's request to be reimbursed for a loss that's covered by car insurance.

Claim Adjuster

A person responsible for investigating and settling a claim.

Claimant

Individual or entity presenting a claim.

Collision Coverage

Collision coverage helps pay for auto repair or replacement costs if your car hits another vehicle/object or if your car rolls over. The maximum amount paid for repair or replacement is the car's actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

Collision Deductible Waiver

This auto insurance coverage pays the deductible for your collision coverage if you're involved in an accident in which an uninsured motorist is held legally responsible. This particular auto insurance coverage isn't available in all states. If it is available, you have to buy this coverage with collision coverage when you buy your auto insurance policy.

Commuting

If you primarily use your car for commuting, this means that you mainly use the car to drive it to and from work or school.

Comparative Negligence

A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when they are partially at fault, or negligent. Each party's negligence is compared to the other's and a claimant's recovery can be reduced by the percentage of his or her own negligence.

Competitive Auto Repair Parts

Parts made by a company other than the manufacturer of the auto. All parts we authorize meet or exceed the quality of the manufacturer's parts, but cost less.

Competitive Estimate

A term used when an insurance company requests that you submit multiple repair estimates for consideration.

Comprehensive Coverage

Comprehensive coverage helps pay for damage to your car resulting from fire, certain natural disasters, falling objects, and vandalism. Theft's also covered. The maximum amount paid for repair or replacement is the car's actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

Comprehensive Physical Damage Coverage

Pays for damage to your car from theft, vandalism, flood, fire or other covered perils. This coverage is subject to the terms, limits and conditions of your policy contract.

Condition

The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.

Continuously Insured

The length of time you've been continuously insured is the number of years you have been covered by one or more insurance companies without a lapse in your auto insurance coverage.

Contributory Negligence

A doctrine of law that, in some states, may prevent claimants from recovering any portion of their damages if they are even partially at fault, or negligent.

Coverage

Protection and benefits provided in an insurance contract.

Customized Vehicle

A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.

Damage

Loss or harm to a person or property.

Damages

Money that one party becomes legally obligated to pay to another party.

Declarations

The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.

Deductible

For some types of auto insurance coverage, you're asked to choose a deductible. A deductible is the amount of damages you agree to pay for if you file an auto insurance claim. Though choosing a higher deductible can substantially lower your auto insurance premium, if you file an auto insurance claim, you'll have to pay the full, pre-established amount of the deductible out of your own pocket in order to receive payment from your auto insurance company.

Defensive Driver Discount

Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums.

Defensive Driver and Driver Improvement Courses

These courses consist of defensive driving training for drivers of all ages as well as "mature driver safety courses" intended for drivers age 55 and over. In certain states, you may qualify for an auto insurance discount if you're in the eligible age range and if you've taken one of these safety courses.

Depreciation

Depreciation is the decline in an object's value due to age, wear and tear, or obsolescence.

Discount

A reduction in your premium if you or your car meet certain conditions that are likely to reduce the insurer's losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.

Driver Training Discount

A discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.

Effective Date

The effective date is the date your auto insurance coverage begins. You are not covered by car insurance prior to an auto insurance policy's effective date.

Emergency Road Service

This optional coverage, sometimes called towing coverage, pays a fixed amount toward the following:
- Towing
- Tire changing
- Gas, oil, and water delivery
- Battery services
- Lockout services

Endorsements

Also known as riders, endorsements are changes to the original insurance contract. In auto insurance coverage, endorsements may include changing your deductibles or adding a new car to your auto insurance policy.

Estimate

An assessment of the cost to repair your damaged property.

Exclusions

Exclusions are situations that are not covered by a given auto insurance policy. Specific exclusions are listed in your auto insurance policy.

Exclusion

Restriction in your insurance policy that limits and may exclude coverage for certain perils, persons, property, or locations.

Expiration Date

This date, found on your declarations page, indicates when your policy coverage runs out. Your renewal policy will start on this date.

Extraordinary Medical

Extraordinary medical coverage is sometimes a part of Personal Injury Protection or First Party Benefits plans. Extraordinary medical coverage protects you in the event you suffer accident-related injuries that require serious and/or long-term medical care. Extraordinary medical coverage begins once you have exhausted the limit on your standard medical benefits coverage.

eBill

An electronic version of your bill that you can review online.

Field Adjuster

An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene investigations, and damage inspections.

Financed Car

A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.

First Party

Term used to refer to an insured.

First Party Claims

A claim for damage, loss or injury made by an insured.

Full Coverage Auto Insurance

Though there is no such thing as "full coverage," people often use this term to describe how much auto insurance coverage they have. Full coverage often implies that the policy has more than just liability coverage.

Funeral Benefits

Funeral benefits coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. If a covered individual dies from accident-related injuries, this auto insurance coverage pays for a portion of funeral expenses, regardless of who is at fault in an accident. Covered costs are subject to the limits you choose when you buy your auto insurance policy.

Garaging Location

The garaging location is where your insured car is parked most of the time. This location is usually indicated by the ZIP Code of the policyholder's primary residence. Notify insurance companies if you normally keep your car in a town other than the one you live. Your garaging location will affect your auto insurance rates.

Good Student Discount

May be awarded to full-time students who maintain a grade average of "B" or better.

Hazard

Anything that increases the chance of an accident occurring.

HEV

Hybrid Electric Vehicles are powered by a combination of battery and fuel. By using less gas, HEVs emit fewer pollutants and receive better gas mileage than standard vehicles.

Homeowners Insurance

If your car is vandalized or stolen, it should be reported to your auto insurance company; however, items stolen from your vehicle are usually covered under your homeowners insurance.

Income Loss

Income Loss coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. Income loss coverage protects you if you're unable to work due to accident-related injuries. This auto insurance coverage helps you recover portions of your lost salary and other expenses you may incur as you try to return to work.

Indemnification

The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.

Indemnity

An indemnity is a pre-determined sum paid for a covered loss.

Independent Adjuster

An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.

Inspection

Verification of a vehicle's physical condition.

Insurance Claim Report

Insurance claim reports provide details about auto insurance claims you or other insured drivers have filed with insurance companies. These reports are provided by independent consumer reporting agencies that collect auto insurance claim information from a variety of insurance companies. One of the most common agencies issuing such reports is C.L.U.E., the Comprehensive Loss Underwriting Exchange.

Insurable Interest

Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.

Insurance

Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.

Insurance Fraud

The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance ID Card

A card issued by your insurer containing basic information about your insurance policy. Some states require you to keep an ID card in your vehicle.

Insurance Score

Insurance scores are based on analytical models that objectively measure the relative likelihood of future insurance losses based on your credit history. These scores and analyses of their significance are provided by independent consumer reporting agencies.

Insured

The insured is an individual covered by a given auto insurance policy.

Insurer

An organization that provides insurance.

Judgment

A judgment is a final decision rendered by a court of law. For example, in a lawsuit related to an auto accident, where Kate hit Eric’s fence, the court determined that Kate was wholly responsible for the accident. The judgment determined that Kate should pay for the costs of repairing Eric’s fence.

Leased Vehicle

A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured.

Legal Liability

Liability imposed by law, as opposed to liability arising from an agreement or contract.

Liability

Liability is a term that broadly means legal responsibility. If you run a stop sign and hit another car, you may be found liable for the damages to the other driver's car.

Liability Adjuster

The liability adjuster handles the investigation of the accident. These adjusters' responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of your claim.

Liability Coverage

Liability coverage protects you from having to deplete your assets to pay for damages if you're held responsible for injuries or damages arising from a car accident. The two main types of liability coverages in an auto insurance policy are bodily injury and property damage.

Liability Insurance

Insurance that provides protection from claims arising from injuries or damage to other people or property.

Liability Investigation

The process of gathering information to determine the cause of an accident.

Lien

A claim, charge, or encumbrance on property as a security for the payment of a debt.

Lienholder

A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

Limits

Limits are the maximum amount an insurance company will pay for a covered loss. Though you can choose your limits for certain coverages, some states require you to buy certain levels of auto insurance coverage. In such states, you'll have to choose limits that at least meet your state's auto insurance requirements.

Limits of Liability

The amount specified in your policy up to which the insurance company will protect you.

Loss

Any measurable dollar cost of damage and/or injury suffered by a person.

Loss of Use

Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

Malicious Mischief

Intentional damage of personal property with malice of forethought.

Material Damage

All property-related damage losses covered by the policy. This includes the following: property damage (PD), comprehensive damage (COMP), collision damage (COLL), Fire/Theft Combined Additional Coverage (FTCA), rental reimbursement (RR), or uninsured motorist property damage (UMPD).

Mechanical Breakdown Insurance

Covers repairs to all mechanical parts of the car, protecting you from expensive repair bills.

Medical Adjuster

The medical adjuster is responsible for reviewing all medical bills, replacement/essential services, and lost wages submitted to the company for injuries sustained by you and/or the passengers in your vehicle (depending upon the state in which you live and the coverage on your policy).

Medical Benefits

Medical Benefits coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. Medical expenses that are the direct result of accident-related injuries are covered. Covered medical expenses are capped at the limits you choose when you buy your auto insurance policy.

Medical Payments Coverage

This auto insurance coverage pays medical bills and/or funeral expenses if a covered driver and/or accompanying passengers are injured or killed while in an insured vehicle, regardless of fault in an accident. This may also cover policyholders and their family members when in others' vehicles, or when policyholders and their family members are on foot and hit by a car. The amount paid by medical payments coverage is capped at the limit you choose when your buy your auto insurance policy.

Misrepresentation

To make written or verbal statements that are untrue or misleading.

Motor Vehicle Report

A Motor Vehicle Report (MVR) provides information on your driving record. This report includes accidents and moving violations. Auto insurance companies obtain MVRs from states where you or other insured drivers have been licensed to drive.

Motorcycle Safety Foundation

An international non-profit organization dedicated to motorcycle safety training, research and awareness.

Multi-Car Discount

Available to policyholders who insure more than one vehicle at the same location.

Named Insured

The person or entity listed on the policy declarations page.

National Insurance Crime Bureau

A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receives support from over 1,000 property/casualty insurance companies.

Negligence

The failure to exercise the care that is expected of a reasonable person in similar circumstances.

National Credit File

The National Credit File provides objective consumer information regarding the financial history of an individual. Information contained in this report is often used to calculate insurance scores.

No-Fault Insurance

If a type of auto insurance coverage is described as no-fault, this generally refers to the way the insurance company settles a covered auto insurance claim. Generally, if a certain coverage is no-fault, responsibility doesn't have to be assigned before an auto insurance claim gets settled.

No-Fault States

In some states, called no-fault states, insurance companies are legally required to pay a policyholder's covered losses, regardless of who's held responsible for an accident. Some no-fault states also restrict the right to sue for damages. In states without no-fault regulations, the insurance company covering the person who caused an accident is forced to pay for covered losses.

Non-Passive Alarm

A non-passive alarm has to be manually activated every time you leave the car. If someone attempts to open your car, the alarm sounds, and the system disables the automobile's starter, ignition system, and/or fuel circuit. You may qualify for an auto insurance discount if your car is equipped with such an alarm.

Non-Renewal

When an insurer decides not to renew a policy at the end of its policy period.

Occurrence

An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.

Original Equipment Manufacturer Parts

Auto parts obtained from the original manufacturer of the car or the supplier of the original part.

Passive Alarm

Passive alarms are automatically activated and emit warning sounds when someone tries to get into your car. Once the passive alarm has been triggered, the system disables the automobile's starter, ignition system, and/or fuel circuit. You may receive an auto insurance discount if your car is fitted with such an alarm.

Passive Restraint System

A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.

Payment Plans

Your auto insurance premium can be paid using one of our installment payment plans; you make several smaller payments but incur a service fee.

Payment Recovery Adjuster

The Payment Recovery Adjuster is responsible for recovering your deductible from the other party's insurance company.

Peril

A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.

Personal Injury Protection

Personal Injury Protection, or PIP, is a kind of auto insurance coverage available only in certain states, where it's often mandatory. PIP generally includes expanded coverage of accident-related medical costs. In some states, PIP also pays for lost wages and similar losses. Specific protections afforded by this type of auto insurance coverage and limits on PIP payments vary widely from state to state.

Personal Property

Property that is not land or connected to land (real estate), such as furniture or jewelry.

Physical Damage

Damage to property.

Pleasure Use

If you use your car for pleasure, this means that you typically drive it for fun, with no regular commuting or business use.

Policy Expiration Date

Your auto insurance policy's expiration date is the date when auto insurance coverage ends if your auto insurance policy isn't renewed. The expiration date can be found on the declarations page of your auto insurance policy, on a proof of insurance card, or on a recent auto insurance renewal notice.

Policy

A contract between you and the insurance company.

Policy Change

Any change made to your insurance policy during the period that the policy is in force.

Policyholder

The person or entity listed on the policy declarations page.

Policy Term

A policy term is the length of time an auto insurance policy is valid. Auto insurance policies from insurance companies have a policy term of 6 months or 12 months, depending on where you live.

Pre-accident Condition

The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.

Premium

The price of the insurance policy that the insured pays in exchange for insurance coverage.

Primary Driver

The primary driver is the person who drives a car most frequently.

Primary Use

A vehicle's primary use is how the car is typically used. Auto insurance companies usually classify primary use as commuting, business/commercial, or pleasure use.

Primary Policyholder

The primary policyholder is the person who serves as the main point of contact with the insurance company. Since he/she is the main point of contact, we need the primary policyholder's valid email address so that we can send account updates, auto insurance renewal notices, and other policy-related communication. Typically, the primary policyholder is also the person billed for your auto insurance policy from the insurance company. If you prefer, any other person listed on your auto insurance policy can also be billed for your auto insurance premium.

Proof of Loss

A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.

Property Damage Liability Coverage

Property damage liability coverage protects you if you are held responsible for damaging someone else's property in a car accident. Property damage coverage helps you reimburse another person for their damaged property (such as a car, a fence, or a home). This type of auto insurance coverage also helps pay your expenses in a related lawsuit. The amount covered by property damage liability is capped at the limit you choose when you buy your auto insurance policy.

Proximate Cause

An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.

Quote

A statement of the premium that will be charged for insurance coverages based on specific information provided by the person requesting the quote including drivers, vehicles, and driving record.

Rate

Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium.

Rating Plan

The rules that determine the cost of your insurance premium. These rules modify the base rates by applying discounts and surcharges based on your personal characteristics, for example, using your seat belt, insuring more than one car.

Reinspection

A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.

Release

Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.

Renewal Date

The date that your insurance policy expires and the date that your renewed policy will begin.

Rental Car Reimbursement

Rental car reimbursement is an optional kind of auto insurance coverage that helps pay for your rental car expenses if an insured car is damaged or stolen and you need a rental car.

Renters Insurance

Insurance that provides protection from losses that arise out of the rental of a home. Protection covers losses to the insured's property, not to losses that occur as a result of owning a home.

Replacement Parts

Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market; and recycled parts. New or after-market parts will be used if we can't find like-kind and quality recycled parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car. We guarantee the after-market parts used for these repairs for as long as you own the car.

Resident Adjuster

Staff adjuster who handles claims in remote areas of a region.

Rider

In motorcycle insurance, a rider is someone who will operate the insured motorcycle. In life and health insurance, the term 'rider' is often used to refer to an endorsement to an insurance policy.

Risk

The chance of suffering a loss.

SR-22

An SR-22 is an official document that shows proof of financial responsibility. Motor Vehicle Departments may require an SR-22 or a similar form for people convicted of certain traffic violations. If an SR-22 is needed, please call our customer service team to purchase your insurance company policy.

Salvage

Damaged property which is taken over by the insurance company after payment of a claim.

Secondary Driver

A secondary driver is one of the drivers listed on your auto insurance policy who's insured for driving an insured vehicle. However, this driver is not a car's primary driver. A secondary driver is also sometimes known as an occasional driver in auto insurance terminology.

Self-Insured Retention

In umbrella insurance, self-insured retention is similar to a deductible in other types of insurance. The self-insured retention is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.

Supplemental Family Member Liability Coverage

Supplemental family member liability (SFML) is an optional coverage, available only in Maryland. This type of auto insurance coverage protects you if you’re found to be at fault in an accident resulting in injury or fatality to a family member. The amount covered by SFML is equal to the Bodily Injury limits purchased, or if SFML is less than Bodily Injury limits than SFML coverage is equal to the state minimum requirements of 20/40.

Supplemental Spousal Liability

Supplemental spousal liability, or SSL, is an optional coverage, available only in New York State. This type of auto insurance coverage protects you if you’re found to be at fault in an accident resulting in injury or fatality to your spouse. The amount covered by SSL is capped at the limit you choose when you buy your auto insurance policy.

Stacking - Uninsured/Underinsured Motorist Bodily Injury Coverage

Stacking is an option available when you buy uninsured/underinsured motorist bodily injury coverage. Stacking changes the limits for this type of auto insurance coverage. Though some states have unique definitions of stacking, in most states when you choose stacking, uninsured/underinsured motorist bodily injury limits increase by the number of cars you're insuring. If you buy $50,000/$100,000 limits for uninsured/underinsured motorist bodily injury coverage, choose stacking, and insure 2 cars, stacked limits for this coverage then equal $100,000/$200,000.

Steering Restraint

A steering restraint is a durable collar or shield fitted to the upper and lower casing of your car's steering column. The collar makes it harder for potential thieves to access, or "hotwire," your car's ignition system. You may qualify for an auto insurance discount if your car is fitted with a steering restraint.

Theft

The unlawful taking of another's property with the intent to permanently deprive the owner of its use or possession.

Third Party

Person or entity not party to an agreement but with an interest in the agreement.

Third Party Claim

Claims for injury or damage to property of a third party alleged to have been caused by the insured.

Tort

Tort is a legal term used to describe instances when someone is deemed legally responsible for injuring another person or damaging his/her property. Some states ask you to select a tort provision. In these states, you can limit your right to sue for non-monetary damages (like pain and suffering) in exchange for a reduced auto insurance premium.

Tortfeasor

One who commits a tort (see above).

Total Loss

Property that has sustained damage so extensive that repairing it is not reasonable. A vehicle is considered a total loss if it cannot be repaired safely, if repairing the vehicle is not economically practical, or if state regulations require us to consider it a total loss.

Towing Coverage

This type of auto insurance coverage is optional, and pays a fixed amount toward towing if your car breaks down or if it's disabled in an accident.

Umbrella Insurance

Provides high limits of additional liability coverage above the limits of your homeowners and auto policy. In addition, it provides coverage that may be excluded by other liability policies.

Underwriting

The process an insurer goes through to determine whether or not it will provide coverage for an applicant.

Underinsured Motorist Bodily Injury Coverage

Underinsured motorist bodily injury coverage is available in some states, where it's often mandatory. This type of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who has insufficient auto insurance coverage. This kind of auto insurance coverage typically pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit. The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Underinsured Motorist Property Damage Coverage

Underinsured motorist property damage coverage is available in some states, where it's often mandatory. This type of auto insurance coverage protects you if your car is damaged in an accident caused by a driver who has insufficient auto insurance coverage. Other specific protection afforded by this type of auto insurance coverage varies from state to state. This kind of auto insurance coverage pays the difference between the coverage limit you select and the other driver's property damage coverage limit. The amount covered by underinsured motorist property damage is capped at the limit you choose when you buy your auto insurance policy.

Uninsured Motorist Bodily Injury Coverage

Uninsured motorist bodily injury coverage is available in some states, where it's often mandatory. This kind of auto insurance coverage pays for your medical expenses, lost wages, and other general damages when you or your passengers are injured in an accident caused by a driver who has no car insurance. Uninsured motorist coverage also pays for injuries sustained in hit-and-run accidents. The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Uninsured Motorist Property Damage Coverage

Uninsured motorist property damage coverage is available in some states, where it's often mandatory. This kind of auto insurance coverage protects you if your vehicle is damaged in an accident caused by a driver who has no car insurance. Other protection afforded by this type of auto insurance coverage varies from state to state. The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy. In some states, you'll need to pay a deductible each time you file an auto insurance claim.

Uninsured/Underinsured Motorist Bodily Injury Coverage

In some states, both uninsured and underinsured motorist bodily injury are bundled into a single coverage. In the states where this type of auto insurance coverage offered, it may be mandatory. This kind of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who doesn't have enough car insurance, or who completely lacks auto insurance coverage. This type of auto insurance coverage also pays for injuries sustained in hit-and-run accidents. The amount covered by uninsured/underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Vandalism

Destruction or defacement of property.

VIN

The VIN, short for Vehicle Identification Number, is the unique 17-digit number found on every car. The VIN contains the vehicle's serial number, as well as abbreviations for the make, model, and year. The VIN appears on your vehicle registration card. It's also engraved in your car, near the base of the windshield on the driver's side dashboard and/or on the edge of the driver's side door. Though you don't need to enter your VIN when you get a car insurance quote from insurance companies, you will need to provide your car's VIN when you buy your auto insurance policy.

Warranty

A written guarantee of the integrity of a product and of the manufacturer's responsibility for the repair or replacement of defective parts.