Named excluded driver:

If there is a vehicle on your policy that certain driver(s) do not drive, you can exclude those driver(s) from being covered by certain insurance coverages on that vehicle. The excluded driver(s) will not have collision or comprehensive coverage if they drive that vehicle.

Standard auto policy:

Standard auto policy is auto insurance that one can obtain through the voluntary insurance industry at a preferred rate.

Youthful operators:

Youthful operators means an applicant or any other operator resident in the same household as the applicant, who customarily operates the auto, or any other person who customarily operates the auto.

Covered Auto:

The autos that are available for coverage under your auto policy

Physical damage coverage:

The part of automobile insurance that covers damage to the insured's property. If you have this coverage, your property is protected in case of damage caused by fire, vandalism, theft, collision and others. Thus, you have the possibility to be compensated if one of these situations occurs. In some cases, it also protects other vehicles from other damages but collision. It is important for you to know that coverage is restricted by the conditions established in the policy.

Uninsured motor vehicle:

The policy defined an "uninsured motor vehicle" as a motor vehicle that was not insured, thus inadequate to cover a person’s bodily injury and property damage losses.

Assigned risk plan:

Coverage in which individuals who cannot obtain conventional automobile liability insurance, usually because of adverse driving records, are placed in a residual insurance market. Insurance companies are assigned to write insurance for them, at higher prices, in proportion to the premiums written in a particular state. These plans protect motorists who suffer injury or property damage through the negligence of bad drivers who otherwise would not have insurance.

Medical payments coverage:

This coverage is used to pay medical expenses incurred by you and your passengers during an accident regardless as to whether or not you are at fault. This coverage is optional in most states with a no-fault law because the no-fault coverage will pay for these expenses as well as often covering things such as lost wages tied to the accident.

Split Limits:

A limits structure for Bodily Injury and Property Damage Liability or Uninsured Motorist coverage which provides, for Bodily Injury, one limit per person, which is the maximum payable for all damages payable to any one injured person, a separate limit per Occurrence, which is the maximum payable for all Bodily Injury in any one occurrence, and a third limit which is the maximum payable for Property Damage in any one Occurrence. Most personal lines auto insurance is written Split Limits.

Uninsured Motorist:

Is the additional coverage offered in insurance policies when the insurer meet an accident from a driver when he or the vehicle does not have third party insurance or the vehicle or driver is not insured at all denying insurance benefits to the victim.

Underinsured Motorist:

Covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages.

Personal Injury Protection (PIP):

Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.

Private Passenger Autos:

Ordinary cars, station wagons and jeeps, utility autos (pick-ups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.

Insuring Agreement:

The Insuring Agreement, is the heart of the insurance policy, stating in general what is to be covered, the losses for which the insured will be indemnified. This section also describes the type of property covered and the perils against which it is insured.

Bad faith claim:

A bad faith claim suggests that the insurance company did not live up to their part of the contract with you and that they acted unreasonably in wrongfully denying your claim. Insurance policies require that the insurance company act in good faith when reviewing a claim. If they do not perform an adequate investigation, attempt to settle your claim for less than its worth, or deny you cover altogether you may have a bad faith claim.

Collision Coverage:

The type of automobile insurance that pays for the damage to the motor vehicle, caused by upset of the car or collision of the vehicle with another car or object, whether or not the accident is the fault of the insured. Such payments are usually subject to a deductible amount.

Auto coverage:

May be described in your contract in this way: "Contractor shall carry bodily injury, property damage, and automobile contractual liability coverage for owned, hired and non-owned autos with a combined single limit of liability for each accident of not less than $1,000,000."

Injury coverage:

An insurance policy that pays for injuries caused to other individuals in the event of a motor vehicle accident. Described by the notation "a/b" where "a" is the dollar amount in thousands of coverage per person, and "b" is the dollar amount in thousands of coverage per accident.

Liability coverage:

This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.

Unearned premium:

Portion of a premium that may be returned to the policyholder if a claim resulting in a total loss takes place before the end of the policy term and eliminates the need for continued coverage.

Policy territory:

Policy territory: the geographic region in which a policy will provide coverage. Typically the United States or Canada, unless specifically stated otherwise in the policy.

Auto policies:

A contract for an automobile in which one party agrees to pay for another party's financial loss resulting from a specified event (for example, a collision, theft or storm damage)

Coverage for damage:

This mandatory (in almost all states) coverage pays for the damage caused to another vehicle in the event of an accident in which you are legally responsible. Given the high price of many vehicles and the unknown damage you could have on public property it is a good idea to have adequate coverage here.

Actual cash value:

Actual Cash Value also known as (ACV) describes what it will cost to replace an item at the time of loss after subtracting depreciation. Common method of determining the amount of reimbursement for a loss.

Auto insurance policy:

Full Comprehensive coverage against accidental loss and/or damage and/or theft of the motor vehicle, including legal liability of the participant, to third parties arising out of the use of the motor vehicle. The Policy is also extended to cover the risk of Terrorism to the extent of the full value of the vehicle.

Do your car insurance the right way, compare 100's of auto insurance quotes from top auto insurance companies in your area, find cheap car insurance