Insurance definitions and terms

A company or person who has been named as an additional interest insured on a policy can be liable for an accident that involves an insured person or vehicle. For example, a lienholder can be an additional interest insured 

There are essentially two types of anti-theft devices: passive and active. Passive devices require no action or activation and automatically arm themselves when the vehicle is turned off, the ignition key is removed or a door is shut. Active devices require some action or activation, such as pushing a button or placing a "lock" somewhere in your car. Typically with active devices, you must re- activate them every time you set them or they won’t work. Keep in mind that you could get a discount for having an anti-theft device in your car.

If an insured person is legally liable for an accident, BI coverage pays for injuries/death to people involved in the accident other than the insured driver. BI also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.

If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism. 

When your insured vehicle overturns or collides with another object, Collision coverage pays for the damage to your vehicle. Collision coverage also may extend to a non-owned vehicle or one rented for personal use that is in your custody or that you are operating. Certain exclusions may apply. Refer to your policy.

Also known as an auto insurance coverage summary, this page is provided by your insurance company and lists the following:

• Types of coverage you have elected
• Limit for each coverage
• Cost for each coverage
• Specified vehicles covered by the policy
• Types of coverage for each vehicle covered by the policy
• Other information applicable to the policy

A deductible is the amount you agree to pay out of pocket for damage resulting from a specific loss or accident. Generally, choosing a higher deductible will lower your premium 

People can be added to policies with the following types of driver status:

• Rated - Actively drive vehicles on the policy
• Excluded - Not allowed to drive vehicles on the policy and will not be covered under your policy in the event of an accident
• Listed - Residents of the household who do not drive the vehicles on the policy (such as a roommate)

"Full coverage" is a common term that people use to describe how much auto insurance coverage they have. Though there is no such thing as "full coverage," it often implies that the policy has more than just Liability coverage.

A garaging location is the place you primarily park your vehicle when you're not using it. Generally, this is your primary residence.

An insurance coverage limit is selected by you and is the most an insurance company will pay for damages or injuries that apply to the coverage. Most states have laws that specify the minimum limit that must be purchased for each required insurance coverage.

Life insurance is a financial safety net for your family. If you pass away, your life insurance policy will pay a lump sum of money to your beneficiaries. There are a few common types of life insurance: term, final expense and permanent.

The amount needed to replace damaged or destroyed property without deducting for depreciation

Rental Reimbursement provides rental car coverage if you have a claim that is covered under Comprehensive or Collision coverage. Daily rental amounts are subject to the limit purchased.  

• This Coverage is typically NOT included in a policy.  It has to be added on as an endorsement.

Roadside Assistance provides services such as towing, flat tire change, locksmith service and battery jump-start to customers, who can elect the service for an additional premium if it is not already included with their insurance policy.

State laws determine if a vehicle requires a salvage title.

• Some states base salvage titles on the extent of damage a vehicle has sustained. For example, in Louisiana, damage to a vehicle must equal or exceed 75 percent of the vehicle's retail value in order for it to require a salvage title, according to state law.
• Other states, such as Florida, require a vehicle to have a salvage title if the insurance company declared the vehicle a total loss. These titles generally indicate whether the vehicle is "rebuildable" (can be repaired and driven on the road) or "not rebuildable" (must be sold for parts).
• Other states "brand" or "notate" the vehicle's title when the estimate of damages reaches a certain percentage of the vehicle's retail value (in New York, it is 75 percent), even if the vehicle has not been declared a total loss and is able to be repaired.
• Other states have no guidelines for issuing salvage titles.

Coverage for high(er) value items like jewelry, art, furs, musical instruments and more that exceed standard personal property limits

• Every carrier has different limits for their underlying and then different limits before an appraisal is needed.  Make sure you check with your agent or carrier if you have questions on this type of insurance
• this is an endorsement that typically can be added to a homeowners insurance policy, renters insurance or a condominium insurance policy 

The named insured or listed agent/broker on a policy may request to designate any other person listed on the policy as a second named insured. The second named insured has the same coverage under the policy as the named insured.

Secondary Residence, AKA as a second home, is a property owned by an individual in addition to their primary residence. It's not the main dwelling where the owner lives, but rather a vacation home, seasonal retreat, or other residence used for personal enjoyment  or occasional occupancy. Unlike investment properties, secondary residences are typically not rented out to generate income 

An SR-22 is a document required by the court that demonstrates proof of financial responsibility for persons convicted of certain traffic violations.

If a driver or owner of a vehicle does not have insurance and is legally liable for an accident, you can use UM coverage for injuries, including death, that you, your resident relatives, and occupants of your insured vehicle sustain, up to the limits you select. Certain exclusions may apply. Refer to your policy.

If a driver or owner of a vehicle is legally liable for an accident but does not have enough insurance, you can use UIM coverage for injuries, including death, that you, your resident relatives, and occupants of your insured vehicle sustain, up to the limits you select. Certain exclusions may apply. Refer to your policy.

If driver or owner of a vehicle is legally liable for an accident but does not have insurance or does not have enough insurance, you can use UMPD to cover damage to your insured vehicle, up to the limits you select. In some states, UMPD is available as an alternative to Collision coverage. Certain exclusions may apply. Refer to your policy.

The Vehicle Identification Number (VIN) for your vehicle is usually found on the driver's side of your dashboard, the vehicle registration or the title. The VIN is a combination of 17 letters and numbers that can be used to identify the make, model and year of a car.