Car Insurance Terms - Part 7
Suspended or Revoked License
Drivers with a license suspension on their driving record face higher premiums,
and are often barred from getting insurance coverage from mainstream companies.
Term
The period of time during which the policy is in effect.
Threshold Level
In the case of some no fault insurance laws, the point at which the insured may
bring tort action for non-economic (pain and suffering) damages under a No Fault
Auto Plan. Many of these plans prohibit tort action for pain and suffering
unless medical bills exceed a set figure, or disfigurement or death occur.
Tort
A private wrong or harm (other than a breach of contract) committed against
another, resulting in legal liability. A tort is either intentional or
accidental (negligent). Auto liability insurance is purchased to protect one
from suits arising from unintentional torts.
Towing and Labor Costs
An endorsement, which pays for the costs associated with certain repairs and
towing in the event of an accident. You're better off with an auto club.
Uninsured Motorists Bodily Injury
Uninsured motorists bodily injury coverage (which must be offered in most
states) pays for a covered person's bodily injuries for 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 for which a person with not
enough insurance is legally liable.
Uninsured/Underinsured Motorists Coverage
This coverage provides protection for the insured, resident relatives, and
occupants of a covered vehicle in an accident in which the owner or operator of
a motor vehicle who is legally liable and either does not have sufficient
coverage or does not have any insurance to cover the loss.
Unearned Premium
The part of your policy term remaining before expiration. If your six-month
policy is in effect a months, the unearned premium is 5/6.
Usage
The primary function of your vehicle, can be categorized as either "business",
"commute", or "pleasure".
VIN (Vehicle Identification Number)
The Vehicle Identification Number is a 17 digit number (which includes both
numbers and letters) unique to your car. The VIN tells the company the make,
model, body type and year of the insured vehicle. You can find your VIN in
several places including the title to your vehicle, your vehicle registration,
your insurance card, your insurance policy, the dashboard of your vehicle, the
driver side door or engine of your vehicle.
Waiver of Collision Deductible
If you have collision coverage on your car, this option pays your deductible for
damage caused by an uninsured or hit-and-run driver, if you can identify the
driver and car that caused the damage.
Whole Dollar Premium
Simply stated, premiums are rounded to nearest dollar, up for amounts over 51
cents, and down for fifty cents and lower.
Previous: Car Insurance Terms
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Car Insurance Terms Explained