Auto Insurance Glossary

"The Power of Knowledge", that's the key to finding good auto insurance. At IQN Insurance.org, we provide you information that will help you make the best decision on your auto insurance policy.IQN Insurance.org wants you to be well informed and thats why IQNAuto.org offers you this Auto Insurance Glossary so you can learn most of the terms that you will come across when shopping for auto insurance online.

Auto Insurance Glossary and various terms used in the Auto Insurance Industry:

Accident: Any collision that results in you having to make a claim with your auto 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 auto 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 auto 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 si used during the policy term.

Effective Date: The date in which the auto insurance policy begins for the covered vehicle.

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

Flat Rate Cancellation: Termination of the auto 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 auto insurance policy becomes active.

Indemnity: The insurance principal which states that the insured vehicle 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 auto insurance policy or make payments which results in the insured not having auto insurance.

Limits of Liability: The maximum an insurance company will pay out in the case of an event covered by the auto 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 auto insurance company to individuals for insuring multiple vehicles under the same policy.

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

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

Per Occurrence Limit: The maximum payable amount by the auto insurance company for a single incident.

Per Person Limit: The maximum payable amount by the auto 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 collision, vandalism, theft or fire.

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

Policy Holder: All persons covered under the auto 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 auto 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 auto insurance policy is in effect.

Un-Earned Premium: The amount of time left on your auto insurance policy>

Usage: The primary purpose of the insured vehicle.

Vehicle Identification Number (VIN): 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.


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