Below is a list of auto insurance terms that you may be unfamiliar with and their definitions. If you have additional questions or would like to learn about a term that is not listed below feel free to contact us.

Declarations Page:  A short document that your car insurance company will send you listing all of the details of your policy.  This typically includes the name and address of the insured, the vehicles covered, the deductible, coverage amounts, etc.

Deductible:  The amount that you have to pay before your auto insurance kicks in.  Once you have paid your deductible, the insurance company will cover the damages above that amount. The higher your deductible the lower your premium will be.

Defensive Driving Course:  A class offered by the state that is designed to teach drivers safe driving skills. Some auto insurance companies offer discounts for drivers that complete one of these courses. 

Depreciation:  Time and wear and tear on your vehicle can cause it to lose value (depreciate).

Effective Date:  The day your auto insurance coverage starts. If you do not know the effective date of your car insurance policy, you can check this on your declarations page.

Exclusions:  Situations that are not covered by your auto insurance policy.

Expiration Date:  The time and date that your car insurance coverage ends.

Gap Insurance:  Insurance coverage that makes up for the difference between what is owed on a vehicle and the replacement value.  This coverage is optional. You might opt for gap insurance if you have financed a vehicle that loses value quickly.

Good Student Discount:  Most auto insurance companies offer a discount for students that make good grades (usually require a B average or better). The insurance company will usually require that you send in proof of your grades (report car, transcript, etc.)

The Insured:  The driver/drivers covered by the auto insurance policy.

Lapse in Coverage: The period of time where a vehicle is not insured.

Limits:  The maximum amount of money the auto insurance company will pay out for an accident.  The higher coverage amounts you have the higher your premium will be.  Your limits should be listed on your declarations page.

Personal Injury Protection:  (PIP Insurance) Covers basic medical expenses for the insured when involved in an accident regardless of fault.  This type of coverage is usually used in no fault insurance states.

Defensive Driving Course:  A class offered by the state that is designed to teach drivers safe driving skills. Some auto insurance companies offer discounts for drivers that complete one of these courses.

Premium:  Total price a driver pays for auto insurance over a period of time.  Auto insurance companies will typically break down your auto insurance in to 6 month or 1 year premiums.

Rental Car Reimbursement:  Optional rider that will reimburse the insured for rental car expenses when their vehicle is not drivable.