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Actual Cash Value

What it costs to replace a piece of property at fair market value, after depreciation.


Is the person in charge of the investigation and determination of liability when an insurance claim occurs.


Is an authorized representative of an insurance company, who offers and sells their insurance products.

Additional Interest Insured

A company or person who is protected under your insurance policy if they are named in a judicial process due to an accident that is deemed the policyholder's fault.

Anti-Theft Device

Is any device used to prevent or deter the unauthorized appropriation of a vehicle. Active anti-theft systems are designed to track a vehicle and automatically contact a response center to begin the recovery process. Passive anti-theft devices prevent or deter the unauthorized appropriation of a vehicle with electronic car alarms, simple wheel locks, and such.

Anti-lock Braking System (ABS)

It is a computerized safety system on motor vehicles which prevents the wheels from locking while braking.


The person or persons held legally responsible for accident-related damages.

Auto 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.

Auto Theft

Comprehensive insurance normally covers the loss of a vehicle due to theft.

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Bodily Injury

Physical damage sustained as a result of an accident.

Bodily Injury Liability Coverage (BI)

Pays damages for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense. Coverage is subject to your policy terms, limits and conditions.

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When an agreement is terminated before its end date by either party.


The company responsible for the insurance policy.


A request for payment of the insurance benefits provided by a policy.


The amount of protection and benefits included in an insurance policy contract.

Comprehensive Coverage (COMP)

Pays for damage to or loss of your automobile from causes other than accidents. These include hail, vandalism, flood, fire, and theft, among others. Check for your policy's exclusions or limitations.

Collision Coverage (COLL)

Provides protection for your vehicle when damage occurs as a result of a collision with another object, without regard to who caused an accident. This coverage is optional, and may extend to vehicles rented and/or borrowed by the policyholder. Please refer to your policy for exclusions or limitations.

Continuously Insured

Refers to the length of time you have maintained insurance on your vehicle without a lapse in coverage.

Coverage Limits

The maximum amount of protection purchased by the insured for a specific coverage. Minimum Limits are often mandated and required by state law.

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Physical harm that impairs value, usefulness or function.

Declarations Page (Dec Page)

It is your auto insurance coverage summary and lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.


The amount the insured is required to pay in a loss before any payment is due from the insurance coverage. The insurance company pays the remainder of each covered loss up to the policy limits.


A deduction from the usual costs of your premium, offered under certain criteria.

Driver Improvement Course

Voluntary classes either offered through or approved by Departments of Motor Vehicles to refresh and/or enhance driving skills. These courses may make drivers eligible for discounts on their premiums if they meet eligibility requirements.

Driver Status

Refers to how a driver has been rated (covered drivers), excluded (not covered) or listed (residents in the household who are not active drivers) in a policy.

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Electronic Funds Transfer (EFT)

Is the transfer of funds from your credit card, checking, or savings account to your monthly bill.


Is a written document attached to an insurance policy that modifies it by changing the coverage it affords.


What your policy will not cover.

Expiration Date

Is the day when your current insurance policy ceases to be active.

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Field Adjuster

Is an insurance claims adjuster who travels to the site of an accident to document findings and investigate the damaged insured property.


Is a financial responsibility insurance certificate, commonly required by a state DMV when an individual has had a DUI/DWI. The state's Motor Vehicle Department will notify the driver when an SR-22 is needed.

Full Coverage

Full coverage refers to a policy with most coverages purchased. Usually this includes liability coverages, comprehensive coverage, collision coverage, towing, rental reimbursement, uninsured motorist coverage (which is when an uninsured driver damages the insured car), and medical payment coverage. All of these are subject to your specific policy.  Please refer to your policy for exclusions and limitations.

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Glass Waiver

Is an additional option in your coverage that pays to repair or replace a broken glass in your vehicle without a deductible.

Garaging Location

Is the zip code where your vehicle is parked when not in use and usually corresponds to your primary residence.

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It is a contract between an insurance company and its client, where the insurance company agrees to provide compensation for specified loss, damage, illness, or death in return for payment of premiums.

Insurance ID Card

Identifies you as the person insured and contains information about what your insurance policy includes.


The person, group, or property for which an insurance policy is issued, also known as policyholders.


Is an insurance company which agrees to pay someone for losses suffered pursuant to the terms of an insurance policy in exchange for the payment of insurance premium fees.

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Loan/Lease Payoff Coverage

Coverage for the amount owed on a total loss or irrecoverable vehicle, minus the Comprehensive and/or Collision deductibles.

Leased Vehicle

It is the extended rental of a vehicle for a definite period of time, during which the vehicle remains the property of the original owner, who is listed as an insured in the vehicle's insurance policy.

Legal Liability

A comprehensive legal term that describes the condition of being actually or potentially subject to a legal responsibility.


An obligation that legally binds an individual or company to settle a debt.


A right to keep property belonging to another person until a debt is paid.


The person or institution that advances money to an individual or organization for use of a property, of which he/she/it retains legal possession of until the debt has been satisfactorily repaid.


The maximum payment amount that an insurance policy will provide in the event of a claim.

Limits of Liability

The provisions of your policy that determine the maximum amount your insurance company will pay in the case of a claim.

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Medical Payments Coverage (MedPay)

Optional coverage that pays medical and/or funeral expenses related to an automobile accident. Please refer to your policy for exclusions and limitations.

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Named Insured

The individual or corporation designated by name as the insured person(s) in a policy.

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Occasional Driver

Person or persons who are not the primary or principal driver of the insured vehicle.

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Personal Injury Protection Coverage (PIP)

May pay for the medical, funeral and other accident-related expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle, regardless of fault. Coverage is subject to your policy terms, limits and conditions.


The contract between the insurer and the insured which determines the claims which the insurer is legally required to pay.


See “Insured.”

Policy Expiration Date

The date when your current insurance policy expires or ceases to be in effect. This date can be found on your current Declaration (or "DEC") page, insurance identification card or recent cancellation notice.

Policy Term

Period of time during which the policy contract provides active protection.


Is the amount of money charged by an insurance company to provide insurance coverage.

Primary Residence

Your actual current place of residence. Primary residence information should be on file with your insurance company during any active policy term.

Primary Use

Describes what your vehicle is mainly used for and can include descriptions like business, farm, or leisure, among others.

Principal Driver

Person who drives the car for the most time.

Property Damage Liability Coverage (PD)

Pays for damage the insured person causes to someone else's property. This coverage also pays for your legal defense costs if you are sued. Please refer to your policy for exclusions and limitations.

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Tells you what the company will charge to insure you for the amount of coverage you need.

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The unit or units used to determine the final premium for a specific policy.

Rental Reimbursement Coverage (RR)

Additional option that provides optional coverage for rental vehicle costs during the time an insured vehicle is disabled as a result of a covered claim.

Roadside Assistance Coverage

A service provided to a driver whose vehicle has a breakdown or mechanical failure on the roadway, in order to help him or her to get back on the road or bring him/her to safety.

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Salvage Titles

A state typically issues a salvage title when an insurance company declares a vehicle to be a total loss, where an accident, theft or other damaging incident has rendered the vehicle more expensive to repair than to replace.

Second Named Insured

An additional individual or corporation designated by name as an insured person(s) in a policy.

Special Equipment Coverage

Coverage for custom parts and equipment that are permanently attached to your vehicle.


Is a financial responsibility insurance certificate, commonly required by a state DMV when an individual has had a license suspension or DUI/DWI. The state's Department of Motor Vehicle will notify the driver when an SR-22 is needed.


It is the right for an insurer to pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid to the insured for the loss.

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Towing and Labor Coverage (TL)

Covers towing and on-site labor charges each time your insured vehicle is disabled. On-site labor refers to labor performed at the site of disablement (i.e., fixing a flat tire so the vehicle can be towed).

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Uninsured Motorist Coverage (UM)

It is the portion of your policy that may cover injuries caused to you and/or your vehicle occupants in the case of an accident caused by an uninsured driver.

Underinsured Motorist Coverage (UIM)

It is the portion of your policy that may cover injuries caused to you and/or your vehicle occupants in the case of an accident caused by an underinsured driver.

Uninsured/Underinsured Motorist Property Damage Coverage (UMPD)

It is the portion of your policy that may cover property damages caused to your vehicle in the case of an accident caused by an uninsured or underinsured driver.

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Vehicle Identification Number (VIN)

It is a unique code including a serial number, used by the automotive industry to identify individual motor vehicles.

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