Auto Insurance Terms And Definitions

When you re ready to take a look at our auto insurance coverage policies or find an insurance agent near you.

Auto insurance terms and definitions. Insurance protection that pays for claims or judgments brought against the insured. If you run a stop sign and hit another car you may be found liable for the damages to the other driver s car. If you want to take control of your finances and save on your car insurance understanding it the best is the best thing to do. Such terms and availability may vary by state and exclusions may apply.

Items that are specifically denied coverage under the terms of an insurance policy. Car insurance premium a car insurance premium is the amount of money paid to an insurance company in return for insurance protection. These definitions do not alter or modify the terms of any insurance contract. Comprehensive insurance normally covers the loss of a vehicle due to theft.

Please read your official policy for full details about coverages. Basic auto insurance terms. Liability is a term that broadly means legal responsibility. Auto insurance terms and definitions.

If there is any conflict between these definitions and the provisions of the applicable insurance policy the terms of the policy control. Car insurance deductible a car insurance deductible is the amount of money you pay out of pocket before the insurance company covers the remainder if you re involved in a covered loss. Although still used today to insure substandard risks two wheel motorized vehicles and commercial autos the basic auto policy has been primarily replaced by the personal auto policy which combines both physical damage coverage and liability insurance for claims arising out of the ownership or use of a vehicle. An anti theft device is one that you use to deter someone from stealing your car.

The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. These car insurance terms will help to educate you and help you to get the best deals on car insurance. A vehicle insurance policy that provides financial protection for the insured car owner and or operator in the case of an accident.

It can cover vehicle damage or loss physical damages and other liabilities related to the accident. This guide to the most commonly used auto insurance terms can help you understand exactly what you re getting from a potential car insurance policy. For example most auto insurance policies exclude coverage for normal wear and tear drag racing and intentional acts.