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Accident: This includes any collision that results in damage to both your car and someone else’s car, or results in an injury for either party. If you get into an accident you must file a claim with your insurance agency.

Binder: This is a statement that immediately provides protection to a policy holder. It can be either written or oral. A binder is meant to provide coverage before an actual policy is set in place.

Bodily Injury Liability: This is insurance that covers liability when a driver is considered to be legally responsible for the injury or death of another motorist. This type of insurance is commonly paired up with property damage liability to form a basis auto insurance policy.

Bundling: This is when you purchase more than one kind of insurance with a certain agency. Oftentimes, an insurance provider will issue a lower auto insurance quote to those who purchase more than one of their products.

Car Insurance: any policy that protects vehicles or drivers in the case of a collision. There are many different types of coverage, which can include liability, medical payments, property damage, collision and comprehensive coverage.

Car Pool Discount: Some insurance companies will give credits to drivers who share the same car. This is because a car with multiple policy
holders is less likely to become involved in an accident.

Collision Insurance: This type of insurance helps to cover extreme damages caused to a person’s car in the event of a traffic collision.

Covered: This term refers to any person who is covered by an auto insurance plan.

Deductible: This is the amount of money a policy holder pays out of pocket in the event of an accident or collision, before the insurance company picks up the tab. The deductable amount that is to be paid is determined by an auto insurance company when a driver first buys a policy.

Driver Education / Defensive Driver Discount: This is a discount that is issued to a policy holder who has taken a class on driving safety or defensive driving and has gained a certificate. 

Gap Insurance: This type of insurance provides money to counteract the difference between a car’s value and any remaining auto loan amount in the event that your car is totaled in a collision.

Good Student Discount: Drivers who are full time students and maintain a grade point average of 3.0 and above may qualify for this discount.

Insured: This is the individual (s) who is covered by an insurance policy. This includes the policy holder, and in some cases, the policy holder’s immediate family, as well as other individuals who are given permission to drive the policy holder’s car.

Loss-Free Credit: This is a credit issued to policy holders who renew their insurance plans and do not have covered loss on their insurance record.

Low-Mileage Credit: This is credit that lowers a driver’s car insurance quote if they decrease their annual mileage.

Mature Driver Discount: This discount is mandatory in many states, and gives drivers over the age of 55 who have completed a driver’s safety course a special premium discount.

Medical Payments: This is a benefit that will cover the cost of emergency room visits, surgical and funeral bills that are caused by an accident. These payments protect the insured and their family members no matter who is at fault.

Multi-Car Discount: This discount pertains to policy holders whose family members are insured for other vehicles through the same auto insurance company.

Other-than-Collision:  This is a term that is used for comprehensive coverage that includes all insurable acts besides vehicle collisions (and overturned vehicles). Protection includes coverage for fire damage, flooding damage, vandalism, theft, and any naturally occurring damage.

Physical Damage: This term implies coverage for damage done to an automobile in a collision.

Premium: This is the amount of money a policy holder will pay to keep their insurance policy in place. 

Property Damage Liability: This covers liability for damage to any personal property resulting in an accident. Coverage ranges from minor damage to complete loss. Property damage liability is most often packaged with bodily injury liability as a standard package.

Renewal Discount: Policy holders who renew their auto insurance through the same company will often receive a discount for customer loyalty.

Rental Reimbursement: This covers the charge of a rental car, in case you need to rent a car while your car is repaired after an accident.

Safety Feature Discount: If you have anti-lock brakes and anti-theft devices for your car, you may receive a lower auto insurance quote. Anti-theft features include disabling devices, alarms, tubular locks and keyless entry.

Underinsured/Uninsured Motorist Protection: This form of insurance will help protect you if you are in an accident with an underinsured or uninsured motorist who is responsible for damaging your car or causing injuries. This form of insurance is optional.