Terms & Definitions
A
Additional
Interest Insured
Anti-Theft
Device
B
Bodily Injury Liability Coverage
C
Comprehensive Coverage>
Collision Coverage
Continuously
Insured
D
Declarations Page
Deductible
Discounts
Driver Status
G
Garaging Location
L
Limits
Loan/Lease Payoff Coverage
N
Named Insured
O
Occasional Driver
P
Policy Expiration Date
Policy Term
Primary Residence
Primary Use
Principal Driver
Property Damage Liability Coverage
S
Second
Named Insured
SR-22
U
Uninsured
Motorist Coverage
Underinsured
Motorist Coverage
Uninsured
Motorist Property Damage Coverage
Underinsured
Motorist Property Damage Coverage
V
VIN
These definitions provide a brief description of the insurance coverage's and some of the terms and phrases used in connection with vehicle insurance. These definitions are not applicable in all states or for all products. This is not an insurance contract. Other terms, conditions, and exclusions apply. Please read the policy for full details about the coverage's. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.
Additional Interest
Insured
Another
person or company who may be liable for an accident involving
an insured or an insured vehicle and who has been named as
an Additional Interest Insured under the policy.
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Antitheft Device
Select
Recovery Device if the system has a device that is capable
of tracking (homing) and recovering the vehicle. These systems
must automatically contact a response center where the process
of vehicle recovery begins. This does not include alarms which
do not have contact with a center or vehicle tracking. To
receive an anti-theft discount, comprehensive and collision
coverage must be present on your policy.
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Bodily Injury
Liability Coverage
Pays
when an insured person is legally liable for bodily injury
or death caused by your vehicle or your operation of most
non-owned vehicles. This coverage also pays for your legal
defense if you are sued.
Common Exclusions: No coverage for (1) bodily injury/death
when you are using your vehicle to carry persons or property
(including magazines, newspapers, food) for compensation or
a fee; (2) liability assumed under a contract; (3) bodily
injury/death to an employee; (4) bodily injury/death caused
by an intentional act; (5) property owned by, rented to, or
in the charge of an insured person; (6) bodily injury/death
to you or relative; (7) bodily injury/death or property damage
resulting from a relative's use of a vehicle, other than a
covered vehicle, owned by a person who resides with you; or
(8) bodily injury or property damage resulting from your operation
or use of a vehicle owned by you, other than a covered vehicle.
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Comprehensive
Coverage
Pays
for loss or damage to your covered vehicle caused by any event
other than collision. This includes damages due to events
such as fire, theft, windstorm, flood, and vandalism. We will
also pay transportation and loss of use expenses under this
coverage if your motor vehicle is stolen.
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Collision Coverage
Pays
for loss to your covered vehicle when it collides with another
object or overturns. We will also pay for a collision loss
to any non-owned vehicle, or to a vehicle you have rented
other than a vehicle rented for use in connection with your
business or employment, while that vehicle is in your custody,
or while you are operating it.
Common Exclusions: No coverage for damages or loss (1) to
a vehicle while being used to carry persons or property for
compensation or a fee; (2) resulting from intention acts,
racing, or preparing for a race or stunting activity; (3)
customs parts or equipment, including electronic equipment,
in excess of the value declared in the application; or (4)
to tapes, compact discs, other media or their carrying cases.
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Continuously Insured
Insurance
coverage was in effect from an insurer or more than one insurer
at all times, without a break or lapse in coverage for any
reason.
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Declarations Page
The
report from your insurance company listing:
the types of coverage you have elected;
the limit for each coverage;
the cost for each coverage;
the specified vehicles covered by the policy;
the types of coverage for each vehicle covered by the policy; and
other information applicable to the policy.
Deductible
The
amount of each loss you agree to pay. Generally, choosing
a higher deductible will lower your premium.
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Discounts
Many
companies will also offer a variety of discounts that can save
you even more money! Make sure to give as much information
as you can when requesting the quote or signing up. Obviously,
the discounts vary between companies. Below are just a few
examples:
- Garage Kept
- Recreation Only
- Alarm
- Multiple Bikes
- Motorcycle Safety Course
- Prior Motorcycle Insurance
- Motorcycle Organization
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Driver Status
Provides
information concerning whether the driver has been rated or
listed on the policy.
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Garaging Location
The
ZIP code where your vehicle is parked when not in use and
usually corresponds to your primary residence.
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Limits
The
most your insurer will pay for a specific insurance coverage.
You may choose the limit which meets your needs. Most states
have laws that specify the minimum limits you must purchase.
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Loan/Lease Payoff Coverage
Loan/lease
payoff coverage, sometimes called "gap" coverage,
pays the difference between what you owe on your vehicle and
what your insurance pays if your vehicle is damaged beyond
repair (totaled) or stolen and not recovered.
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Named Insured
The
first person in whose name the insurance policy is issued.
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Occasional Driver
The person who is not the primary or principal driver of the
vehicle.
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Policy Expiration Date
The
date when your current insurance policy expires. This date
can be found on your current policy, Declaration (or "DEC")
page, insurance identification card or recent cancellation
notice. This date is not to be confused with the date of your
next payment or when your renewal payment is due.
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Policy Term
The
length of time that the policy is in force.
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Primary Residence
The
place where you will reside for the majority of your policy
term. If you are a homeowner who does not reside in the home
you own, please choose the "rent" or "other"
option.
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Primary Use
What
your vehicle is mainly used for:
| To/From Work If you use your vehicle to commute to and from your work and/or school. | |
| Business If your vehicle is used for one or all of the following: | |
|
|
| Farm If your vehicle is used primarily on a farm, ranch or orchard | |
| Artisan If your vehicle is operated by you in a trade or business where the vehicle is: | |
|
|
| Pleasure No others apply |
Principal Driver
The
person who drives the car most often.
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Property
Damage Liability Coverage
Pays
when an insured person is legally liable for damage to the
property of others caused by your vehicle your operation of
most non-owned vehicles. This coverage also pays for your
legal defense costs if you are sued.
Common Exclusions: Same as Bodily Injury Liability Coverage
exclusions, but the exclusions apply to damage to property.
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Second Named Insured
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.
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SR-22
A
document required by the court for persons convicted of certain
traffic violations that demonstrates proof of financial responsibility.
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Uninsured Motorist
Coverage
Protects
you, your resident relatives, and occupants of a covered vehicle
if any of these insured sustain bodily injury, including any
resulting death, in an accident in which the owner or operator
of a motor vehicle who is legally liable does not have insurance.
Common Exclusions: No coverage for bodily injury/death sustained
by any person while using or occupying a (1) covered vehicle
while being used to carry persons or property for compensation
or a fee; (2) a covered vehicle without the permission of
you or a relative; or (3) a non-owned vehicle without the
permission of the owner.
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Underinsured Motorist
Coverage
Protects you, your resident relatives, and occupants of a
covered vehicle if any of these insured sustain bodily injury,
including any resulting death, in an accident in which the
owner or operator of a motor vehicle who is legally liable
does not have enough insurance.
Common Exclusions: No coverage for bodily injury/death sustained
by any person while using or occupying a (1) covered vehicle
while being used to carry persons or property for compensation
or a fee; (2) a covered vehicle without the permission of
you or a relative; or (3) a non-owned vehicle without the
permission of the owner.
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Uninsured
Motorist Property Damage Coverage
Available
in some states as an alternative to Collision Coverage. This
coverage pays you for damage to the covered vehicle that has
been sustained in an accident in which the owner or operator
of a motor vehicle who is legally liable does not have insurance.
Common Exclusions: No coverage for property damage sustained
by a covered vehicle while (1) being used to carry persons
or property for compensation or a fee; or (2) a covered vehicle
without the permission of you or a relative.
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Underinsured
Motorist Property Damage Coverage
This
coverage pays you for damage to the covered vehicle that has
been sustained in an accident in which the owner or operator
of a motor vehicle who is legally liable is an underinsured
motorist. This coverage is available in only a limited number
of states.
Common Exclusions: No coverage for property damage sustained
by a covered vehicle while (1) being used to carry persons
or property for compensation or a fee; or (2) a covered vehicle
without the permission of you or a relative.
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VIN
The
vehicle identification number (VIN) on your vehicle. This
number is usually found on the dashboard of your vehicle on
the driver's side, and is usually listed on the vehicle registration
and title. The VIN number is a combination of letters and
numbers 17 characters in length that can be used to identify
the make, model, and year of your car.