Understand every acronym, coverage line item, and endorsement on your insurance declaration page. Sourced directly from standard ISO personal auto contracts and NAIC model regulations.
The fair market value of a vehicle immediately prior to an accident or loss, calculated as replacement cost minus depreciation, age, mileage, and physical wear-and-tear.
If a car purchased for $30,000 is totaled after 4 years when its fair market resale value is $18,000, the insurer pays $18,000 minus the collision deductible.
Coverage that pays for medical treatment, surgical procedures, hospital stays, lost income, and legal defense costs of third parties injured in an accident caused by an insured driver.
If you cause an accident injuring two passengers in another vehicle, BI pays their medical bills up to your per-person and per-accident policy limits.
Comprehensive Loss Underwriting Exchange. A national database maintained by LexisNexis containing up to 7 years of auto insurance loss claims, payouts, and inquiries associated with an individual driver or vehicle VIN.
Insurance underwriters pull your C.L.U.E. report when pricing a new auto quote to verify prior at-fault accidents and comprehensive claims.
First-party insurance that pays to repair or replace your vehicle if it collides with another motor vehicle, hits a stationary object (tree, guardrail, pole), or is involved in a single-vehicle rollover.
If you back your car into a concrete parking pillar, collision coverage pays for body repairs minus your collision deductible.
First-party insurance that covers physical damage to your vehicle resulting from non-collision perils, including theft, vandalism, hail, fire, flood, falling objects, windshield cracks, and animal strikes.
If a deer strikes your front fender on a rural road, comprehensive pays for repair costs minus your comprehensive deductible.
The legally binding summary schedule at the beginning of an auto insurance policy specifying policy numbers, effective dates, covered drivers, insured vehicle VINs, specific coverage limits, deductibles, and itemized premium charges.
Before switching carriers, audit your existing declaration page line-by-line against competing quotes to confirm limit and deductible parity.
The permanent loss in a vehicle market resale value that occurs after it sustains accident damage, even if structural and cosmetic repairs are restored to pristine condition.
A luxury sedan worth $45,000 before a crash may only be worth $38,000 on CARFAX after repairs; a third-party DV claim seeks recovery of the $7,000 difference.
An optional endorsement that pays the financial shortfall between your vehicle Actual Cash Value (ACV) payout and the remaining balance owed on your auto loan or lease if the car is totaled or stolen.
If you owe $24,000 on your loan but the insurer values your totaled vehicle at $19,000, GAP coverage pays the $5,000 deficiency to the lienholder.
First-party coverage that pays for necessary medical, dental, surgical, hospital, and funeral expenses for the driver and passengers in your vehicle regardless of fault.
MedPay covers your passenger emergency room copay and diagnostic X-rays up to the stated policy limit (e.g. $5,000) with zero deductible.
A mandatory first-party coverage in No-Fault states that pays for medical treatment, a percentage of lost wages (typically 60%–80%), and essential replacement services (childcare, cooking) regardless of fault.
In Florida or New York, your own PIP coverage pays the first $10,000 or $50,000 of your medical bills and lost income after an accident.
Coverage that pays for damage an insured driver causes to another person property, including other vehicles, fences, utility poles, buildings, and personal belongings.
If you skid on ice and crash through a neighbor wooden fence, your Property Damage liability covers the replacement fence construction.
An endorsement that reimburses the daily cost of a rental vehicle while your personal car is in the repair facility following a covered comprehensive or collision loss.
A $30/$900 rental rider reimburses up to $30 per day for up to 30 days while your vehicle is repaired after a hail storm.
An optional endorsement providing emergency dispatch services for mechanical breakdowns, towing to the nearest qualified repair shop, tire changes, battery jump-starts, and fuel delivery.
If your car battery dies at work, roadside assistance covers the dispatch fee for a mobile service technician to jump-start your vehicle.
A liability structure where coverage is separated into three distinct caps: bodily injury per person, bodily injury per accident, and property damage per accident (e.g. 100/300/100).
In a 100/300/100 policy, the carrier pays up to $100,000 per injured person, $300,000 total per crash, and $100,000 for property damage.
Technology that monitors driving behavior (mileage, speed, braking intensity, time of day, and smartphone interaction) via mobile apps or OBD-II sensors to adjust policy discounts or surcharges.
Programs like Progressive Snapshot or State Farm Drive Safe & Save evaluate driving data over a 90-day period to calculate discount tiers.
Coverage that pays for medical expenses, lost wages, and pain and suffering when you are struck by a driver who has no insurance, insufficient liability limits, or who flees the scene in a hit-and-run.
If an uninsured driver runs a red light and fractures your arm, your UM coverage pays your medical bills and lost earnings up to your UM limit.
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