Glossary of Terms
The value of property, less any depreciation or pre existing damage.
A customer who is a craftsman or skilled worker and using their vehicle at their job to carry tools, or deliver goods.
The termination of an insurance policy before the policy has expired.
The request by the policyholder (aka the insured) to have an item fixed or repaired by the insurance policy.
Failure to disclose the facts which could void an insurance policy.
Additional equipment that has been added to a vehicle after it has been purchased from the manufacturer, altering or changing the original vehicle model. Coverage can be purchased to insure these additions added by the insured, such as special rims or stereo equipment that has been upgraded.
The front page of a policy jacket that includes the name of the insured (s), the premium, the amount of coverage and the name, description and location of the item being covere.
The amount of money the insured pays out to the insurance company before their vehicle gets repaired. Common deductible amounts are $250, $500 or $1,000.
The date on which an insurance policy starts or goes into effect.
The process of making a change to an active policy that increases or decreases the premium. Common endorsements include adding a second vehicle or a second driver.
Specific hazards or perils that are not covered on the insurance policy. There are common exclusions like intentional acts that are excluded. You can also exclude a driver so that they are not covered on the auto policy.
The ending date of an insurance policy. After the insurance policy expires, the insured would have to restart or renew a policy.
The period of time after the due date of a payment during which the policy will remain in force without any penalty. After the grace period runs out, the policy will cancel if no payment is made.
A monthly installment fee charged by the insurance company for breaking up the premium into monthly installments.
The policy paperwork between the insured (customer) and the insurer (insurance company) that explains the details of the contract.
The customer or client that is covered by the policy.
The insurance company that is covering the customer, or insured.
The organization or bank that has a financial interest in the property you are insuring, which is typically a finance or leasing company.
A fee the insurance company charges to issue the policy, which is non-refundable and fully earned.
The time frame of a policy that is in force, during the effective and expiration dates.
The process of putting the insurance policy back in force after a lapse. If the insured fails to pay the premium on time, the policy will be cancelled, but can usually be reinstated if it is done within a predefined number of days from the cancellation.
The process of continuing your insurance policy after it's set to expire. When a policy contract is set to expire after six months or one year, the customer needs to renew their policy to keep it in force.
A set amount of money per day to help assist with renting a car when the insured's car is not movable due to a covered loss.
A service for the insured to provide them assistance when their vehicle has run out of gas, lost their keys, needs a jump start or essential fluids, flat tire, etc.
Pays for towing charges used to tow the insured's car to the nearest facility for repair.
The process that each policy will go through so that the insurance company can decide to insure the risk or not. Underwriting determines who is insured and how much in insurance premiums to charge the insured.
A unique code given to each vehicle made up of numbers and letters to help an insurance company get specific details and characteristics of the vehicle.