Auto Insurance Glossary of Terms
We understand that auto insurance can sometimes be filled with unfamiliar terms. We've created this auto insurance glossary to help you quickly find the terms meant to explain your coverage and only leave you with more questions.
Just click on the section of the alphabet that corresponds to the first letters of the words that puzzles you.
A-C |
D-F |
G-L |
M-O |
P-R |
S-T |
U-Z
- Gap Insurance
If you are making lease or loan payments and you experience a total loss, there may be a difference (gap) between the market value of your vehicle and what you still owe on it. This optional coverage pays the difference.
- Good Student Discount
A premium discount for students with high scholastic grades. Some statistical research has shown a relationship between good grades and safe driving.
- Hit and Run
An accident caused by someone who does not stop to assist or provide information.
- ID Card
An identification card issued by your insurance company that provides evidence of liability insurance. Such evidence is required in most states.
- Lapse in Coverage/Policy Lapse
A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.
- Lender/Lessor
Your lender is the institution to which you make car payments. Your lessor is the institution to which you make your lease payments.
- Loss Payee/Lien holder
A person or entity with a legally secured insurable interest in another's property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.
