Car Insurance Terms

Understanding the insurance terms used in your policy are important to fully understand what you are paying for. Below is a list of forms, terms, and a list of the types of insurance coverage. Each term has a short summary, you can read more in depth about each car insurance term by clicking on the link above the summary.

Car Insurance Forms

Insurance Declaration Page

Insurance Declaration Page is an outline of information in your car insurance policy, it is provided by either email or fax after you have purchased the insurance policy called instant proof of insurance.

SR-22 Insurance Document

SR-22 Insurance Document is a form that must be submitted to the state by insurance providers for high risk drivers that upholds their car insurance liability coverage.

Insurance Coverage Types

Bodily Injury Liability Coverage

Bodily Injury Liability Coverage is a form of coverage that protects the policyholder of financial liability in the event they are to be found at fault of the accident and there are injuries involved with the other driver.

Comprehensive Car Insurance Coverage

Comprehensive Car Insurance Coverage is a form of coverage that protects the policyholder if their car is damaged in fire, the victim of a theft, or damaged in another way that isn’t an accident with another car.

Collision Car Insurance Coverage

Collision Car Insurance Coverage is a form of coverage that protects the policyholder up to a certain amount determined in the policy in the event they are in an accident with another vehicle.

Full Coverage Car Insurance

Full Coverage Car Insurance is a form of coverage that protects the policyholder with both comprehensive and collision protection.

Minimum Limits Car Insurance

Minimum Limits Car Insurance is a form of coverage that complies with the minimum amount of insurance coverage that is required by state law.

Liability Only Car Insurance

Liability Only Car Insurance is a form of coverage that is regulated on the state level and is the minimum amount of liability protection the driver must have and the coverage protects the driver from injuries to the other drivers in the event of an accident.

Uninsured Motorist Coverage

Uninsured Motorist Coverage is a form of coverage that provides the policyholder financial protection in the event they are in an accident with a vehicle and the other driver is uninsured.

Underinsured Motorist Coverage

Underinsured Motorist Coverage is a form of coverage that protects the policyholder if they are in an accident with a vehicle and the at-fault driver’s insurance policy can not cover the injuries.

Key Car Insurance Terms

Additional Interest Insured

Additional Interest Insured is a person that is additionally insured under the named insures insurance policy.

Anti-Theft Device

Anti-Theft Device is a security device in a vehicle that deters a criminal from theft.

Claims Adjuster

Claims adjuster is an investigator hired by an insurance company as a thirdparty when a policyholder files a claim

Deductible

Deductible is the amount of money that is paid by the policyholder out of pocket to the insurance company.

Driver Status

Driver Status is the classification of each driver that is labeled on the car insurance policy.

Lien Holder

Lien Holder is the legal owner of property that can be used to secure debt from a financial lender.

Limits

Limits is the maximum amount of financial protection identified in the policy with the insurance company.

Loan Payoff Coverage

Loan Payoff Coverage is an insurance policy that helps cover the loan on the policyholders vehicle if its declared a total loss.

Named Insured

Named Insured is the owner of the insurance policy.

Occasional Driver

Occasional Driver is a driver of a vehicle identified in the insurance policy as using the vehicle on occasion.

Personal Injury Protection Coverage

Personal Injury Protection Coverage is an extension of financial protection that covers the driver for medical expenses, lost wages regardless of who was at fault, and is often referred to as no-fault coverage.

Policy Expiration Date

Policy Expiration Date is the date that the insurance policy expires for the policyholder.

Principal Driver

Principal Driver is the main driver of that vehicle and they are identified in the insurance policy.

Policy Term

Policy Term is the period of time the policyholder is covered by their insurance company.

Premium

Premium is the monthly amount of money the policyholder pays to the insurance company in exchange for having the companies financial backing in the future.

Primary Residence

Primary Residence is the address the policyholder identifies as their primary living residence.

Primary Use

Primary Use is the use the driver will be using the vehicle under the car insurance policy with the insurance company.

Vehicle Identification Number

Vehicle Identification Number is a unique number that is attached to the particular vehicle and is given to the vehicle in production to track the vehicle.