Every term, minus the jargon

17 terms

Actual Cash Value (ACV)

The value of a vehicle at the time of loss, typically replacement cost minus depreciation.

Bodily Injury Liability

Coverage for injuries to other people that the policyholder is legally responsible for.

Claim

A formal request to an insurer for payment under the terms of a policy.

Collision Coverage

Coverage for damage to your own vehicle from hitting another vehicle or object.

Comprehensive Coverage

Coverage for non-collision damage such as theft, weather, fire, or animal strikes.

Declarations Page

The summary page of a policy showing insured vehicles, drivers, coverages, limits, and deductibles.

Deductible

The amount the policyholder pays toward a covered claim before coverage pays the remainder.

Exclusion

A situation or type of loss specifically not covered by a policy.

Gap Coverage

Optional coverage that may pay the difference between a vehicle's value and the amount still owed on a loan or lease.

Liability Limits

The maximum amounts a policy will pay for covered liability claims, often shown as three numbers.

Medical Payments (MedPay)

Optional coverage that may help pay medical costs for you and passengers regardless of fault, where offered.

Personal Injury Protection (PIP)

Coverage required in some states that may pay medical expenses and certain other costs regardless of fault.

Policy Period

The span of time a policy is in effect, such as six or twelve months.

Premium

The amount paid to keep a policy in force for a set period.

Property Damage Liability

Coverage for damage you cause to someone else's property, such as their vehicle or a fence.

Uninsured Motorist Coverage

Coverage that may help when you are hit by a driver who has no insurance.

Underinsured Motorist Coverage

Coverage that may help when the at-fault driver's limits are too low to cover your losses.