Terms and 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 coverages 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 coverages. 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.
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.
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: | |
|
|
If your vehicle is used primarily on a farm, ranch or orchard | |
If your vehicle is operated by you in a trade or business where the vehicle is: | |
|
|
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.