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
- Uninsured Motorists Bodily Injury
Uninsured motorists bodily injury coverage (which must be offered in most states) pays for a covered person's bodily injuries of which an uninsured or hit-and-run motorist is legally liable, but unable to pay.
- Underinsured Motorists Bodily Injury
Underinsured motorists bodily injury coverage (which must be offered in most states) pays for a covered person's bodily injuries of which a person with not enough insurance is legally liable.
- Uninsured Motorists Property Damage
Uninsured Motorist Property Damage Liability coverage pays for property damages caused by uninsured drivers.
- Unearned Premium
The portion of your premium remaining on your policy term. For example, with a six-month premium, at the end of the first month of the premium period, five-sixths of the premium is unearned by the insurance company.
- Unsatisfied Judgment Fund
Some states have established laws to reimburse those injured in auto accidents that have been unable to collect from the responsible party.
- Usage
This refers to the primary function or purpose in which you intend to operate your vehicle. For example, if you primarily drive your car to and from work, the usage is considered "commute; "if you're self-employed and you primarily drive to see customers, the usage is considered "business;" if you're retired, your usage is considered "pleasure."
- VIN Vehicle Identification Number
A Vehicle Identification Number is a 17-digit alpha-numeric code that provides valuable information concerning the vehicle's serial number, make, model, options, and year in official records (like a Social Security number for your car).
- Waiver of Collision Deductible
This option pays your collision deductible when you carry collision coverage on a vehicle that is damaged by an uninsured or hit-and-run motorist who is at fault. Coverage applies only when there is actual physical contact and when you can identify the uninsured driver or vehicle.
- Whole Dollar Premium
Generally, insurance premiums are rounded to the nearest dollar; an amount of 51 cents or more being rounded up to the next dollar, and any amount less than that being dropped.
