Auto Insurance Glossary

Decode insurance jargon and understand your policy

The amount you pay out-of-pocket before insurance coverage kicks in. Higher deductibles mean lower premiums but more cost if you file a claim.

The amount you pay for insurance coverage, typically monthly or annually. Your premium is based on risk factors and coverage levels.

Insurance that pays for injuries and property damage you cause to others. Required in most states.

Pays for damage to your vehicle from collisions with other vehicles or objects, regardless of fault.

Covers damage to your vehicle from non-collision events like theft, vandalism, weather, or animal strikes.

The maximum amount your insurance will pay for a covered claim. Expressed as numbers like 100/300/100.

Your vehicle's current market value, accounting for depreciation. What insurance pays if your car is totaled.

The process insurance companies use to evaluate risk and determine your premium and eligibility.

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