Insurance Glossary

The value of your property at the time of loss, minus depreciation. If you have an old roof, ACV pays what the old roof is worth, not the cost of a new one.

General

A temporary contract of insurance that provides proof of coverage until the permanent policy is issued.

Pays for medical expenses, lost wages, and pain and suffering for other people injured in an accident where you are at fault.

Pays for damage to your car resulting from a collision with another car or object (like a pole or tree), regardless of fault.

Pays for damage to your car caused by events other than a collision, such as theft, fire, vandalism, hail, or hitting a deer.

General

The amount you must pay out-of-pocket before your insurance company pays a claim.

General

A written agreement attached to a policy that adds or subtracts insurance coverage (also called a 'Rider').

Pays the difference between what you owe on a car loan and the car's actual cash value in the event of a total loss.

Coverage for businesses that protects against claims of bodily injury or property damage to third parties (e.g., a customer slipping in your store).

General

Coverage that pays for damage or injuries you cause to others. It does NOT cover your own property.

Pays medical expenses and lost wages for you and your passengers after an accident, regardless of who was at fault.

General

The amount you pay for your insurance policy, usually monthly or every 6 months.

Coverage that pays the cost to replace damaged property with new property of similar kind and quality, without deduction for depreciation.

A certificate of financial responsibility filed by your insurer with the state to prove you have liability coverage. Required for high-risk drivers.

A contract guaranteeing that a specific obligation will be fulfilled. If the obligation is not met, the surety company pays the claim.

Pays for your injuries and property damage if you are hit by a driver who doesn't have insurance or enough insurance.