# Car insurance glossary

> Plain-language definitions, examples, and policy checks for 60 common auto insurance terms.

## [Actual cash value](https://locations.goautoinsurance.com/car-insurance-glossary/actual-cash-value.md)

Actual cash value is an estimate of property's value immediately before a covered loss, accounting for factors such as age, condition, mileage, and local market data.

## [Additional driver](https://locations.goautoinsurance.com/car-insurance-glossary/additional-driver.md)

An additional driver is someone listed on a policy who may drive an insured vehicle but is not necessarily the named insured.

## [Aftermarket parts](https://locations.goautoinsurance.com/car-insurance-glossary/aftermarket-parts.md)

Aftermarket parts are replacement vehicle parts made by a company other than the original vehicle manufacturer.

## [Anti-theft discount](https://locations.goautoinsurance.com/car-insurance-glossary/anti-theft-discount.md)

An anti-theft discount is a premium reduction an insurer may offer for an eligible factory-installed or approved vehicle security device.

## [At-fault accident](https://locations.goautoinsurance.com/car-insurance-glossary/at-fault-accident.md)

An at-fault accident is a crash in which a driver is found fully or partly responsible under the applicable rules.

## [Bodily injury liability](https://locations.goautoinsurance.com/car-insurance-glossary/bodily-injury-liability.md)

Bodily injury liability is coverage for covered injuries you cause to other people in an auto accident.

## [Car insurance claim](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-claim.md)

A car insurance claim is a request for an insurer to review a loss and pay benefits that the policy covers.

## [Car insurance deductible](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-deductible.md)

A car insurance deductible is the amount you agree to pay toward certain covered claims before the insurer pays its share.

## [Car insurance down payment](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-down-payment.md)

A car insurance down payment is the amount due when a policy begins under an installment plan.

## [Car insurance premium](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-premium.md)

A car insurance premium is the price an insurer charges for a policy.

## [Car insurance quote](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-quote.md)

A car insurance quote is an estimate of the premium for selected drivers, vehicles, coverages, and limits.

## [Car insurance rate](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-rate.md)

A car insurance rate is a pricing value an insurer uses to calculate premium for a particular risk.

## [Claims adjuster](https://locations.goautoinsurance.com/car-insurance-glossary/claims-adjuster.md)

A claims adjuster investigates an insurance claim and evaluates coverage, damage, fault, and the amount payable.

## [Collision coverage](https://locations.goautoinsurance.com/car-insurance-glossary/collision-coverage.md)

Collision coverage helps pay for covered damage to your car after it hits another vehicle or object, or overturns.

## [Combined single limit](https://locations.goautoinsurance.com/car-insurance-glossary/combined-single-limit.md)

A combined single limit provides one liability maximum for covered bodily injury and property damage from an accident.

## [Comprehensive coverage](https://locations.goautoinsurance.com/car-insurance-glossary/comprehensive-coverage.md)

Comprehensive coverage helps pay for covered vehicle damage that is not caused by a collision.

## [Continuous insurance coverage](https://locations.goautoinsurance.com/car-insurance-glossary/continuous-insurance-coverage.md)

Continuous insurance coverage means maintaining insurance without a break between policy periods.

## [Coverage limit](https://locations.goautoinsurance.com/car-insurance-glossary/coverage-limit.md)

A coverage limit is the maximum amount available under a particular coverage.

## [Declarations page](https://locations.goautoinsurance.com/car-insurance-glossary/declarations-page.md)

A declarations page is the policy summary that lists major details such as drivers, vehicles, coverages, limits, deductibles, dates, and premium.

## [Defensive driving discount](https://locations.goautoinsurance.com/car-insurance-glossary/defensive-driving-discount.md)

A defensive driving discount is a price reduction that may apply after an eligible driver completes an approved safety course.

## [Diminished value](https://locations.goautoinsurance.com/car-insurance-glossary/diminished-value.md)

Diminished value is a claimed reduction in a vehicle's market value after it has been damaged and repaired.

## [Driving record](https://locations.goautoinsurance.com/car-insurance-glossary/driving-record.md)

A driving record is a state-maintained history that can include license status, traffic violations, convictions, and reportable accidents.

## [Fault determination](https://locations.goautoinsurance.com/car-insurance-glossary/fault-determination.md)

Fault determination is the evaluation of who was legally responsible for an accident and in what proportion.

## [Full coverage car insurance](https://locations.goautoinsurance.com/car-insurance-glossary/full-coverage-car-insurance.md)

Full coverage is an informal phrase, not a standard policy type or a promise that every loss is covered.

## [Garaging address](https://locations.goautoinsurance.com/car-insurance-glossary/garaging-address.md)

A garaging address is the location where a vehicle is usually kept when it is not being driven.

## [Insurance grace period](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-grace-period.md)

An insurance grace period is extra time allowed for a required action in limited situations, if the policy or law provides it.

## [Insurance installment plan](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-installment-plan.md)

An insurance installment plan divides a policy premium into scheduled payments.

## [Insurance lapse](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-lapse.md)

An insurance lapse is a period when required or expected coverage is not in force.

## [Insurance risk class](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-risk-class.md)

An insurance risk class is a group of policyholders with similar characteristics used in underwriting or pricing.

## [Insurance score](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-score.md)

An insurance score is a rating tool based on selected credit information and other permitted data, where state law allows its use.

## [Insurance subrogation](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-subrogation.md)

Insurance subrogation is the process by which an insurer seeks recovery from a responsible party after paying a covered claim.

## [Insurance underwriting](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-underwriting.md)

Insurance underwriting is the process an insurer uses to decide whether it will offer or continue coverage and on what permitted terms.

## [Insured](https://locations.goautoinsurance.com/car-insurance-glossary/insured.md)

An insured is a person or organization that qualifies for protection under an insurance policy.

## [Liability coverage](https://locations.goautoinsurance.com/car-insurance-glossary/liability-coverage.md)

Liability coverage pays covered costs when you are legally responsible for injuring someone or damaging their property with a vehicle.

## [Medical payments coverage](https://locations.goautoinsurance.com/car-insurance-glossary/medical-payments-coverage.md)

Medical payments coverage can pay eligible medical or funeral expenses for you and covered passengers after an auto accident.

## [Multi-car discount](https://locations.goautoinsurance.com/car-insurance-glossary/multi-car-discount.md)

A multi-car discount is a price reduction an insurer may offer when more than one eligible vehicle is insured on the same policy or account.

## [Named insured](https://locations.goautoinsurance.com/car-insurance-glossary/named-insured.md)

The named insured is the person or organization specifically listed as an insured on the declarations page.

## [No-fault insurance](https://locations.goautoinsurance.com/car-insurance-glossary/no-fault-insurance.md)

No-fault insurance usually means a system where your own policy pays certain injury benefits after a crash, regardless of who caused it.

## [OEM parts](https://locations.goautoinsurance.com/car-insurance-glossary/oem-parts.md)

OEM parts are replacement vehicle parts made by the original vehicle manufacturer or supplied under its brand.

## [Permissive use](https://locations.goautoinsurance.com/car-insurance-glossary/permissive-use.md)

Permissive use refers to someone driving an insured vehicle with the owner's permission.

## [Personal injury protection](https://locations.goautoinsurance.com/car-insurance-glossary/personal-injury-protection.md)

Personal injury protection can pay covered medical expenses and certain other costs after an auto accident, regardless of fault.

## [Policy cancellation](https://locations.goautoinsurance.com/car-insurance-glossary/policy-cancellation.md)

Policy cancellation ends insurance before the scheduled expiration date.

## [Policy endorsement](https://locations.goautoinsurance.com/car-insurance-glossary/policy-endorsement.md)

A policy endorsement is a written change that adds to, removes from, or modifies the standard insurance contract.

## [Policy exclusion](https://locations.goautoinsurance.com/car-insurance-glossary/policy-exclusion.md)

A policy exclusion describes a person, property, use, event, or type of loss the policy does not cover.

## [Policy limit](https://locations.goautoinsurance.com/car-insurance-glossary/policy-limit.md)

A policy limit is the most an insurer will pay for a covered loss under the stated part of a policy.

## [Policy nonrenewal](https://locations.goautoinsurance.com/car-insurance-glossary/policy-nonrenewal.md)

Policy nonrenewal means an insurer will not offer another policy period after the current one expires.

## [Policy period](https://locations.goautoinsurance.com/car-insurance-glossary/policy-period.md)

The policy period is the span of time during which an insurance policy is scheduled to provide coverage.

## [Proof of insurance](https://locations.goautoinsurance.com/car-insurance-glossary/proof-of-insurance.md)

Proof of insurance is a document or approved electronic record showing that a vehicle or driver has an insurance policy in force.

## [Property damage liability](https://locations.goautoinsurance.com/car-insurance-glossary/property-damage-liability.md)

Property damage liability pays for covered damage you cause to someone else's vehicle or property.

## [Rental reimbursement coverage](https://locations.goautoinsurance.com/car-insurance-glossary/rental-reimbursement-coverage.md)

Rental reimbursement coverage helps pay for temporary transportation while a covered claim leaves your vehicle unusable.

## [Roadside assistance coverage](https://locations.goautoinsurance.com/car-insurance-glossary/roadside-assistance-coverage.md)

Roadside assistance coverage pays or arranges specified help when a covered vehicle becomes disabled.

## [Salvage title](https://locations.goautoinsurance.com/car-insurance-glossary/salvage-title.md)

A salvage title or certificate is a state designation for a vehicle that meets that state's definition of a total loss or severely damaged vehicle.

## [Split limits](https://locations.goautoinsurance.com/car-insurance-glossary/split-limits.md)

Split limits state separate maximums for bodily injury per person, bodily injury per accident, and property damage per accident.

## [SR-22 insurance](https://locations.goautoinsurance.com/car-insurance-glossary/sr-22-insurance.md)

An SR-22 is a form an insurer files with a state to confirm that a driver has required liability coverage. It is not a separate type of insurance.

## [Stacking insurance coverage](https://locations.goautoinsurance.com/car-insurance-glossary/stacking-insurance-coverage.md)

Stacking combines eligible uninsured or underinsured motorist limits from more than one vehicle or policy when the law and contract allow it.

## [State minimum coverage](https://locations.goautoinsurance.com/car-insurance-glossary/state-minimum-coverage.md)

State minimum coverage is the least auto insurance or financial responsibility protection required by a state for a particular driver or vehicle.

## [Total loss](https://locations.goautoinsurance.com/car-insurance-glossary/total-loss.md)

A total loss occurs when an insurer determines that a damaged or stolen vehicle meets the applicable standard for being totaled.

## [Underinsured motorist coverage](https://locations.goautoinsurance.com/car-insurance-glossary/underinsured-motorist-coverage.md)

Underinsured motorist coverage can help when an at-fault driver has insurance but not enough to cover a qualifying loss.

## [Uninsured motorist coverage](https://locations.goautoinsurance.com/car-insurance-glossary/uninsured-motorist-coverage.md)

Uninsured motorist coverage can pay covered losses when an at-fault driver has no liability insurance.

## [Vehicle identification number](https://locations.goautoinsurance.com/car-insurance-glossary/vehicle-identification-number.md)

A vehicle identification number is the unique 17-character code assigned to most modern vehicles.

## Related resources

- [Car insurance guide](https://locations.goautoinsurance.com/car-insurance-guide.md)
- [Find a GoAuto Insurance location](https://locations.goautoinsurance.com/index.md)