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Glossary
The words on an insurance policy, in plain language.
| Term | Plain meaning |
|---|---|
| A | |
| Actual cash value (ACV) | What your vehicle was worth just before a loss, considering age, mileage and condition. |
| C | |
| Cancellation | Ending a policy before its full term, by you or by the insurer. |
| Claim | A formal request to your insurer to pay for a covered loss. |
| Collision | Coverage for damage to your own vehicle from a crash, regardless of fault. |
| Comprehensive | Coverage for many non-crash events to your own vehicle, such as theft, hail, fire and hitting an animal. |
| D | |
| Declarations page | The summary page of a policy: who and what is covered, for how long, and the limits and deductibles. |
| Deductible | The amount you pay toward a covered loss before the insurer pays. |
| E | |
| Exclusion | A situation or type of loss the policy says it will not cover. |
| L | |
| Lapse | A gap in coverage, for example if a payment is missed and the policy is cancelled. |
| Liability | Coverage for harm you legally cause to other people and their property. |
| Limit | The most an insurer will pay for a covered loss. |
| N | |
| Named insured | The person or people listed on the policy as the main policyholders. |
| Non-renewal | The insurer choosing not to offer another policy term. |
| P | |
| Premium | The amount charged for the policy for a period of time. |
| S | |
| Surcharge | An extra charge added to a premium, often tied to a recent accident or violation. |
| T | |
| Telematics | Technology that records driving details such as miles and braking, used by some usage-based programs. |
| U | |
| Underinsured motorist | Coverage that can help when another driver is at fault but has too little insurance. |
| Uninsured motorist | Coverage that can help when another driver is at fault and has no insurance. |
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