Anti-Theft Device
A device that is capable of tracking and recovering the automobile, usually through a homing device. This type of system will contact a response center to begin the process of recovering the stolen automobile.
Auto Insurance
This is insurance which protects the insured against losses involving the use of automobiles. Various coverages may be bought depending on the desires of the insured. Such coverages include the liability coverages of bodily injury, property damage, and medical payments, and the physical damage coverages of collision and comprehensive.
Bodily Injury Coverage
This coverage pays when an insured is legally liable for bodily injury or death caused by an insuredís vehicle or an insuredís operation of most non-owned vehicles. This coverage would also pay for a legal defense if an insured were sued.
Business Auto Coverage Form
The most recent commercial auto insurance coverage form to be used. It can be underwritten as a monoline policy or as part of a commercial package.
Business Auto Policy
This is a policy which covers Liability and Physical damage on commercial automobiles.
Collision Coverage
Auto Insurance that covers loss to an insuredís own automobile caused by its collision with another vehicle or object but which does not cover bodily injury or property damage liability resulting from the collision.
Comprehensive Coverage
Usual name for physical damage coverage resulting from losses caused by events other than collision including fire, theft, vandalism, falling objects and various other perils.
Continuously Insured
Refers to insurance coverage being in effect from an insurer or multiple insurers at all times, without a break or lapse in coverage at any time for any reason.
Declaration Page
This is the report from your insurance company which includes the types, limits, and costs for each coverage as well as the vehicles covered by the policy. It also would include the types of coverage for each vehicle covered by the policy and other pertinent information.
This is the amount an insured agrees to pay in the event of a loss.
Drive Other Car Endorsement
This is a coverage that can be added to an auto policy providing auto coverage for individuals named in the endorsement while they are driving autos not owned by the individuals and not named in the policy. Otherwise known as DOC coverage.
Employers Non-ownership Liability Insurance
This coverage insures the employer for liability from the use by employees of their own autos on company business.
Extended Non-Owner Liability
This is an endorsement to a personal auto policy that provides broader liability coverage only for specified named individuals. This endorsement provides cover for non-owned autos provided for the regular use of an insured, use of autos to carry individuals or property for a fee, and broader coverage for autos used in the course of business.
Financial Responsibility Clause
This clause states that an auto policy conforms to the financial responsibility laws of any respective state in which the insured is using the insured automobile.
Fleet Policy
This is an insurance policy that applies to a multiple number of vehicles, usually five or more.
Garage Coverage Form
This is a commercial auto insurance form that is used to cover automobile dealers, repair shops, service stations, and garages.
Garaging Location
This is the zip code where an automobile is parked when not being used and usually corresponds to the primary residence of the insured.
Good Student Discount
This is a discount awarded to students with high scholastic achievement.
Hired Automobile
This coverage applies to autos an insured leases, hires, rents, or borrows, but not to autos owned by employees or their families.
The most an insurance company will pay for a specific insurance coverage. Individuals can choose the limit which meets their needs. Many states have laws that specify the minimum limits an insured must purchase.
Livery Use
The use of an automobile for hire to carry individuals. Livery use is excluded in auto policies unless coverage for it is specifically stated.
Motor Vehicle Record
The driving record of an individual which includes accidents and traffic violations. It is also known as an MVR.
Named Insured
It is the first individual in whose name the auto insurance policy is issued.
Named Non-Owner Policy
It is an auto insurance policy issued to an individual who does not own an automobile, but who drives loaned or rented automobiles.
No-Fault Insurance
Several states have laws permitting the individual automobile accident victim to collect monies directly from their own insurance company for medical and hospital expenses regardless of whose fault the accident was. The laws vary from state to state. However, most states will allow the individual to sue the party at fault if the amount of damages is higher than a certain stated limit.
Occasional Driver
An individual who is not the primary or principal driver of the automobile.
Personal Injury Protection or PIP
These policies refer to no-fault benefits in states that have enacted mandatory or optional no-fault auto insurance coverages. Generally, PIP includes benefits for medical expenses, loss of work income, accidental death and funeral expenses.
Physical Damage
Damage to an automobile resulting from perils such as collision, theft, fire or any damage to the automobile itself.
Policy Expiration Date
The date when an insurance policy expires.
Radius of Operation
This is usually used to develop rates for autos used in a business endeavor. The larger the radius the higher the rates.
Safe Driver Plan
This is a plan for which points are given for traffic violations and certain types of accidents, with each point adding a percentage surcharge to the rating factor that is used for determining rates.
This is a document required by the court for individuals convicted of certain types of traffic violations that shows proof of financial responsibility.
Threshold Level
This is the level at which an insured may start a tort action under a modified No-Fault Auto Plan.
Towing Costs
This is an optional auto coverage that pays the cost up to a fixed amount for the towing of an inoperable vehicle.
Transportation Expenses
This is coverage for transportation expenses incurred by the named insured only when the theft of the insuredís automobile occurs. There is a daily and maximum dollar limit.
Underinsured Motorists Coverage
This is coverage in an auto policy for which the insurer will pay claims up to certain limits for bodily injury damages, if the limits of liability under the liable motorist’s policy are completely used up and the liable motorist canít pay the full amount for which he is liable.
Unsatisfied Judgment Fund
Also known as UJF, many states have laws which provide for reimbursement to a person injured in a car accident who has not been able to collect from the responsible party.