RateTalk / Insurance Glossary – Auto Insurance Definitions
It is RateTalk insurance’s responsibility to let you know the basic insurance terms. This way when you are shopping for insurance, you will know what you are getting and also be able to easily understand what is on your declaration page.
See below the most important and common Insurance terms.
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ACV / replacement cost coverage: The actual cash value or ACV of your car is the amount to replace or repair your car after depreciation. The ACV takes your car’s current value into account, not the amount you originally paid for it.
Age first licensed in the US: How old you were when you first received your driver’s license. This establishes your driving history and experience.
Airbag: Airbags are inflatable devices that deploy to protect you and your passengers in the case of an accident. Airbags are part of your car’s safety equipment and can influence your rates.
Anti-Theft: Anti-theft measures like car alarms and automatic steering wheel locks are designed to protect your vehicle from theft. Anti-theft devices may lower your insurance rates.
Auto pay: Scheduled, automatic payments that are pulled from your bank or credit card at your set due date. You can streamline your budget and never miss a payment by using auto pay.
Bank Account Number: Your bank account number is the identifying number on your bank account. This number is different from your debit card and is used to make online bank payments.
Bank Routing Number: Your routing number is used to confirm your bank information when you’re making payments. You can find your routing number on your checks or through your bank account.
Billing Address: Your billing address is the location on account with your bank, credit card, or other payment method. For most people, their billing address is the address where they live.
Billing zip code: Your billing zip code is the zip code on record with your credit card company, bank, or other payment company. Your billing zip code is used to verify and confirm your secure payment information.
College Credit: A reduced rate available for some college students. If you’re a full-time college student doing well in your classes, you may be eligible for a discount.
Collision coverage — deductib: The deductible in your insurance policy is the amount that you pay in the case of a collision claim. If you make a collision coverage claim, you’re responsible for paying the deductible and the insurance company will cover the rest of the amount.
Comprehensive coverage — deductible: A deductible is the amount that you are responsible for paying towards your insurance costs. If you have a comprehensive coverage claim, you’ll pay the deductible amount before the insurance company makes their payment.
Credit Card CVV number: The card verification number or CVC is a safety number that verifies safe credit card usage. Your CVC is usually 3 or 4 digits and found on the back of your card.
Credit Card Number: The credit card number is the identifying account number on the front of your credit card. This number usually has 15 or 16 digits, but yours may have between 13 and 19.
Daytime Running Lights: A program that helps teach new drivers the basics of driving. Helps the driver to get used to driving a vehicle, and is often used when preparing for a driver’s license test or permit test.
Distant Student: A discounted insurance rate available for students who don’t drive during the school year. Students who don’t have a car while they’re in school, and only drive on visits back home, may enjoy a lower insurance cost.
Driving History: Your driving history is a record of your driving behavior and includes your past accidents and tickets. Your driving history plays a major role in setting your insurance costs and rates.
Driving School: A program that helps teach new drivers the basics of driving. Helps the driver to get used to driving a vehicle, and is often used when preparing for a driver’s license test or permit test.
Education: An insured driver’s highest level of completed education, such as high school, college, or graduate school. Your education level gives additional context to your profile and driving history.
Forward Collision Warning: A forward collision warning is a sensor in modern cars that alerts drivers when they may face a front collision. Forward collision warnings are safety innovations that can help determine your rates.
General Safety Equipment: General safety equipment or GSE refers to a range of standard safety tools to keep you safe in your vehicle. Your insurance rates may be influenced by the amount of GSE in your vehicle.
Go paperless: Manage your account digitally instead of with paper forms and documents. You can reduce your environmental impact and enjoy easy access to your account online by going paperless.
Good Student: This is the total number of miles accumulated by your vehicle in one year. Car insurance policies take total miles into consideration when determining risk.
Have you had continuous insurance coverage in the last 7 years?: Constant, gapless insurance coverage as a driver for the past seven years. Whether or not you’ve had steady insurance in the past will influence your current and future rates.
Liability — Bodily Injury (double limit per accident): This is the amount of coverage provided per person in case of bodily injury during an accident. Bodily injury insurance covers physical injuries, usually limited to double the amount per accident.
Liability coverage — Bodily Injury (double limit per person): This liability coverage insures against physical injury to a person during an accident. These policies offer double the coverage amount per person.
Liability coverage — Bodily Injury (single limit per accident): Bodily injury liability covers physical damage due to an accident With a single limit, this policy offers the exact amount of coverage.
Liability coverage — Property Damage (per accident): Property liability coverage insures vehicles and other property against accidental damage. These policies are applied for a total amount per accident.
Liability coverage — Property Damage (per person): Property damage liability insurance covers vehicles and property in the case of an accident. This policy considers the people involved, not the incident itself.
Medical Payments coverage: Medical payments coverage can help you or your passengers make medical payments after an accident. This coverage assists you recover in the case of a serious accident.
Miles Driven per Year: This is the total number of miles accumulated by your vehicle in one year. Car insurance policies take total miles into consideration when determining risk.
Military: Military discounts may be available for active and former military members. If you’re active-duty or a veteran, ask whether you’re eligible for lower insurance costs.
Multiple Lines of Insurance: Multiple lines of insurance include coverage for a range of liabilities bundled into one policy. For example, you can combine your car and homeowner’s insurance for more coverage through one policy.
Multiple Vehicles Insured: Multiple vehicles can be covered under one policy. You can cover all of your family’s vehicles in one policy to make the most of your coverage.
New or Used Vehicle: A new vehicle hasn’t had a previous owner, but a used vehicle has been owned by at least one other person. Used vehicles may have lower costs but can also face previous damage.
Occupation: The job or industry of an insured driver. Your occupation paints a picture of your lifestyle and is part of your driving profile.
OEM parts coverage: Original equipment manufacturer or OEM coverage accounts for replacing your vehicle’s parts with equipment from the original manufacturer. If you don’t have this coverage, your vehicle may be repaired using aftermarket parts.
Organization Memberships: Insurance discounts available for members of other groups, for example AAA or AARP. Look for discounts or reduced rates if you’re a member of membership organizations.
Parent’s Policy: A driver can be covered under their parent’s insurance policy instead of one in their own name. Many families choose to keep young adults on their parent’s insurance policy through college and their early 20s.
Passive Restraint: A vehicle safety device that secures a person in their seat. Helps to protect the driver and passengers from sudden movements caused by an accident and sharp stop.
Pay in full: An insurance account that’s paid in full instead of making monthly payments. You may receive a discount for paying your account in full instead of with installments.
Personal Injury Protection coverage (per person): This coverage insures you against personal injury. A personal injury policy covers you in the case of physical injury.
Policy Effective Date (new policywe are rating): The date your insurance policy went into effect. The policy effective date determines when your coverage begins.
Prior (Current) Expiration Date: The date that your previous insurance expired, or that your current insurance will expire. This date is part of your insurance profile.
Prior (Current) Insurance Carrier: The name of the last insurance company you used, or the insurance company you’re currently using. This helps us transfer your coverage.
Prior (Current) Liability Limits: The amount of coverage your last or current insurance policy provided. This amount establishes the amount of liability and damages for which you’ve been covered.
Purchase Date of the Vehicle: The purchase date of your vehicle is the day that you became financially responsible for your vehicle. This date shows your history with the car and establishes your driving record.
Registered under: The person a vehicle is registered under is its legal owner. Your vehicle must be registered under your name for you to purchase insurance.
Rental reimbursement coverage: Rental reimbursement through your car insurance policy helps pay for a rental car if your vehicle isn’t able to be driven. Rental reimbursement can get you back on the road if your car is being repaired.
Salvage title: A salvage title is issued when your vehicle has been deemed “totalled” or otherwise irreplaceable. If your car has been totalled, you need a salvage title to continue your claims process.
Telematics: Often used with commercial vehicles, telematics uses GPS, sensors, and diagnostics to track the location, activity, and behavior of a vehicle. Safe driving and following your insurance company’s standards can help you get a lower policy premium.
Time with Prior (Current) Insurance: How long you held a policy with your previous or current insurance company. This establishes the length of your insurance history.
Towing coverage: Towing coverage is part of your car insurance that handles any towing costs you may face. Towing coverage can help you if your car breaks down or is damaged in an accident.
Uninsured Motorist coverage — Bodily Injury (double limit per accident): Uninsured motorist coverage protects you in case of damage caused by a driver without their own insurance. The bodily injury coverage has a double limit per accident.
Uninsured Motorist coverage — Bodily Injury (double limit per person): An uninsured motorist policy insures against damages caused by a driver without an insurance policy. This bodily injury insurance uses a double limit per person.
Uninsured Motorist coverage — Bodily Injury (single limit per accident): Uninsured motorist policies cover you against drivers who don’t hold insurance. The bodily injury policy has a single limit per each accident.
Vehicle Identification No.: A vehicle identification number or VIN is a unique number assigned to your car, which can be used to track your vehicle throughout its lifespan. A VIN can be used to pull vehicle history, including accidents and tickets.
Vehicle Odometer Read: The odometer is a gauge that measures the distance your vehicle has traveled. Your odometer readings can be used to show how much you use your vehicle on a regular basis.
Vehicle Purchase Price: The vehicle purchase price is the amount that you paid for your vehicle. This amount is taken into account when setting your insurance policy coverage.
Vehicle used for Rideshare (e.g. Uber): A vehicle used for Rideshare is one that’s used to transport passengers for Uber, Lyft, or another gig-based Rideshare program. Vehicles used for Rideshare can face different insurance options.