Auto Insurance Terms (D – L)
Deductible: The portion of a covered loss for which you are responsible as opposed to the portion that your insurance company pays. Lower deductibles means higher premium while higher deductibles offer you lower premiums.
Discount: A reduction in the cost of your auto insurance premium based on car’s safety features including airbags, anti-lock brake system and a security alarm etc.
Driver Improvement Course: Drivers above the age 55 and older can avail a voluntary driver improvement course to refresh their driving skills for the changed physical conditions and alertness. Taking this course usually fetch these drivers for a discount as long as they meet eligibility requirements.
Driver Status: Driver status eligible to be added into the auto insurance policies are…
Rated: Actively drive vehicles on the policy
Excluded: Not allowed to drive vehicles on the policy and will not be covered under the policy in the event of an accident
Listed: Residents of the household who do not drive the vehicles on the policy
Endorsement: Any change made to an existing auto policy. These can include addition of new vehicle or driver, change of address, adjusting limits of each type of coverage, additional coverage, optional coverage etc.
Exclusions: Specific situations that are not covered by your auto insurance policy
Fault: Fault basically means who was responsible for the accident. Insurance adjusters determine this by examining all available information on the accident including police reports, witness reports and their own data collected.
Full Coverage: Full coverage simply means that the policy has more than just Liability coverage (Read about Liability coverage below).
Gap insurance: A type of insurance offered to auto lease and loan customers that owe more on a car than it’s real worth. Gap insurance is pretty useful as it pays the difference between what you owe and the actual cash value of a vehicle in the event a car theft etc.
Garaging Location:The place where you primarily park your vehicle when you’re not using it.
High-risk driver: A driver who has had accidents or tickets on his or her driving record. High-risk drivers usually have to pay more as their insurance premium.
Independent Agent or independent agency: An agent or agency not directly employed by an insurance company. Independent agents may represent multiple insurance companies and can help you find the best fit for your auto insurance needs.
Liability coverage: Coverage for damages your vehicle causes to others and their property.
An insurance coverage limit is selected by you and is the highest amount an insurance company will pay for damages or injuries applicable to the coverage. There may be state specific laws that specify the minimum limit that must be purchased for each insurance coverage.
Loan or Lease Payoff Coverage: Same as ‘Gap coverage’.