Save on Car Insurance with Companies You Trust

Please provide a valid zip code.


Car Insurance Glossary

Your key to finding good car insurance is staying informed. offers a glossary so you can learn most of the terms you’ll come across while shopping for car insurance online

Accident – Any collision that results in you having to make a claim with your insurance company.

Automobile insurance – An insurance policy that covers automotive vehicles and its inhabitants in the case of an accident or event which is covered under the policy. Coverage types can include, but are not limited to, liability, medical payments, property damage, bodily injury, collision and comprehensive coverage.

Binder – A statement providing immediate protection to the insured. The statement can be written or oral and is designed to provide temporary and immediate coverage until the actual policy is issued.

Claim – The request for coverage by the insured after an event that is covered under the insurance policy.

Combined Single Limit – The combination of bodily injury and property damage that is expressed as a single monetary amount.

Covered Person – All persons covered under the insurance policy.

Deductible – The dollar amount that the insured must pay after a covered event before the insurance will pay the remainder.

Earned Premium – The amount of the premium that is used during the policy term.

Effective date – The date in which the policy coverage begins for the covered vehicle.

Exclusion – Any listed items that are not covered under the insurance policy.

Flat Rate Cancellation – Termination of the insurance policy before it goes into effect.

Garage Location – The Zip code in which your vehicle is normally parked.

Hit and Run – An accident in which the at-fault party fails to stop and provide their information.

Inception Date – The date in which the insurance policy becomes active.

Indemnity – The insurance principal which states that the insured will be restored to the approximate financial condition before the accident occurred.

Lapse in Coverage – The time in which the insured party fails to renew their policy or make payments which results in the insured not having car insurance.

Limits of Liability – The maximum an insurance company will pay out in the case of an event covered by the insurance policy.

Motor Vehicle Record (MVR) – The statement from the Department of Motor Vehicles which lists any traffic violations the insured party received during a given period of time.

Multi-car Discount – A discount given by an insurance company to individuals for insuring multiple vehicles under the same policy.

No-Fault Insurance – Policy coverage that allows the insured to be compensated by their insurance company regardless of who was at fault during an accident.

Occasional Driver – Any driver that is not the primary driver of a vehicle, such as a spouse or a child.

Per Occurrence Limit – the maximum payable amount from the insurance company for a single incident.

Per Person Limit – The maximum payable amount by the insurance company after an incident for an individual person’s injuries.

Physical Damage – Any damage that occurs to the insured vehicle during a covered event such as a collision, vandalism, theft or fire.

Policy – The written contract between the insurer and the insured which states the all coverages and limitations of the contract.

Policyholder – All persons covered under the insurance policy.

Premium – The amount of money that the insured person pays for a specified risk on the policy for the stated period of time.

Principal driver – The primary driver of the insured vehicle.

Renewal – The act of maintaining an insurance policy beyond the date of completion.

SR-22 – Insurance that is required for individuals through court order when they have been in an accident or been convicted of a traffic offense without showing proof of insurance.

Term – The amount of time that an insurance policy is in effect.

Unearned Premium – The amount of time left on your insurance policy.

Usage – The primary purpose of the insured vehicle.

Vehicle Identification Number – An alpha-numeric code assigned to each vehicle which provides information such as make, model, year and any options.

Waiver of Collision Deductible – Pays the insured’s collision deductible during a hit and run or when the at-fault party is uninsured when the policy holder is able to identify the at-fault party.

Please provide a valid zip code.