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
- Medical Payments
This pays for medical and funeral expenses incurred in an auto accident, regardless of fault. It will also cover injuries sustained by passengers in your car, or while you're operating someone else's car (with their permission), in addition to injuries you or your family members incur when you're pedestrians.
- Multi-car discount
A discount offered by some insurance companies for those with more than one vehicle insured on the same policy. In some cases, if you drive a company car insured by your company, your own insurance company may give you the multi-car discount.
- MVR - Motor Vehicle Record
A motor vehicle record, also referred to as DL printout, or MVR, contains information obtained from an individual's driver license application, abstracts of convictions and accidents.
- Named Insured
Any person, firm or corporation designated by name as the insured person(s) in a policy. Others may be protected by policy definition even though their names aren't on the policy, such as other drivers operating (with consent) the named insured's covered auto.
- Named Non-Owner Policy
A policy endorsement for one who operates any non-owned automobile on a regular basis, such as driving a car provided by one's employer.
- No-Fault Insurance
Many states have enacted auto accident compensation laws permitting auto accident victims to collect directly from their own insurance companies for medical and hospital expenses regardless of who was at fault in the accident. Although there are many legal variations of no-fault insurance, most states still allow people to sue the negligent party if the amount of damages exceeds a certain state-determined threshold.
- Non-Owned Auto
Any vehicle that is not owned, borrowed, or leased by the insured, and which is used primarily for a business purpose.
