Car Insurance Glossary: Terms and Definitions

Last Updated on January 29, 2026

Use this glossary for quick, plain-English definitions of common car insurance terms. Each definition includes a link to a deeper Insurance Panda explanation.

Jump to: A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z

A

Act of God

An informal phrase for sudden natural events (like hail or a falling tree limb). Whether it’s covered depends on your policy—many “act of God” vehicle losses are handled under comprehensive coverage.

Accident Forgiveness

A feature some insurers offer that may prevent your rate from increasing after your first qualifying at-fault accident. Learn more.

Accident Record

Your history of reported crashes and claims that insurers may use to price your policy. Learn more.

Actual Cash Value (ACV)

The market value of your car right before a loss, factoring in depreciation; ACV is often used for total-loss payouts. Learn more.

Adjuster

An insurance professional who investigates claims and determines coverage and payment amount. Learn more.

Advanced Driver Assistance Systems (ADAS)

Safety technologies like automatic emergency braking, lane-keeping assist, and blind-spot monitoring. These can affect claim severity and may qualify for discounts with some insurers.

Aftermarket Parts

Non-OEM parts made by third parties. Some policies and state rules allow aftermarket (or “LKQ”) parts in repairs, while others limit when they can be used. Learn more.

Agreed Value

A valuation method (often for classic/collector cars) where you and the insurer agree up front on the payout amount if the vehicle is totaled. Learn more.

AM Best Rating

A financial-strength rating that helps indicate an insurer’s ability to pay claims. Learn more.

Anti-Theft Discount

A discount some insurers offer when your vehicle has qualifying anti-theft features or devices. Learn more.

Appraisal

A process used to determine the value of a vehicle or the amount of a covered loss when you and the insurer disagree (commonly in total-loss or valuation disputes).

Appraisal Clause

A policy provision that explains how appraisal works if there’s a dispute over the amount of loss. It typically outlines how appraisers are selected and how an umpire decision may be used.

Arbitration

A dispute-resolution process where a neutral third party reviews a claim disagreement and issues a decision. Learn more.

Assigned Risk Plan

A state-run option that can place high-risk drivers with an insurer when they can’t get coverage in the regular market. Learn more.

At-Fault Accident

A crash where you’re determined to be primarily responsible, which can affect claims handling and future rates. Learn more.

Auto Insurance Binder

Temporary proof of coverage (often before final policy documents are issued). Learn more.

Auto Insurance Score

A scoring model insurers may use (where allowed) to help predict risk and price a policy. Learn more.

B

Backup Camera Discount

A discount some insurers offer for vehicles with safety technology like backup cameras (if the carrier credits it). Learn more.

Bad Faith

When an insurer fails to handle a claim fairly or in good faith, potentially exposing it to legal action. Learn more.

Betterment

A claims concept where a repair improves your vehicle’s condition beyond what it was before the loss (for example, replacing worn parts with brand-new ones). Some insurers may reduce payment for the “betterment” portion, depending on state rules and policy language.

Bodily Injury Liability (BI)

Liability coverage that helps pay for injuries you cause to others in an accident (up to your limits). Learn more.

Broad Form Insurance

A policy structure where coverage may follow the driver more than the vehicle, with important limitations. Learn more.

Broker

A licensed professional who helps you shop across multiple insurers (different from a captive agent). Learn more.

Bundle Discount

Savings you may get by combining auto insurance with homeowners, renters, or other policies. Learn more.

Business Use

How a vehicle is used for work (sales calls, deliveries, transporting tools, etc.). Business use can affect underwriting and whether you need a commercial policy or a specific endorsement. Learn more.

C

Cancellation

Ending an insurance policy before its term is up (ideally without creating a lapse). Learn more.

Cancellation Fee

A fee some insurers charge when you cancel mid-policy, depending on state rules and the policy contract. Learn more.

Captive Agent

An agent who sells policies for a single insurance company (or a small group of affiliated brands). Learn more.

Car Insurance Card (Proof of Insurance)

The document (paper or digital) showing your policy is active and meets state requirements. You typically need it for traffic stops, registration, and accidents. Learn more.

Car Insurance Claim

A request you file with your insurer to pay for a covered loss (damage, theft, injuries, etc.). Learn more.

Claimant

The person or entity making a claim. In auto insurance, this could be you (a first-party claim) or someone making a liability claim against you (a third-party claim).

Claim Denial

When the insurer decides a loss isn’t covered (or not covered in full) based on policy terms, exclusions, or facts. Learn more.

Claims-Free Discount

A discount you may earn for going a certain period without filing claims. Learn more.

CLUE Report

A claims history report insurers may use to underwrite and price coverage. Learn more.

Clean Driving Record

A history with few or no tickets/accidents, which often qualifies for better rates and discounts. Learn more.

Clean Title

A title status indicating the vehicle hasn’t been branded as salvage/rebuilt in the title record. Learn more.

Collision Coverage

Coverage that helps pay to repair or replace your car after a crash (subject to your deductible). Learn more.

Combined Single Limits (CSL)

A liability structure that combines bodily injury and property damage into one total limit per accident. Learn more.

Commercial Auto Insurance

Coverage intended for vehicles used for business purposes, often with different protections than personal auto policies. Learn more.

Comparative Negligence

A legal rule used in many states to assign percentages of fault. Your payout (or what you owe) may be reduced based on your share of responsibility.

Comprehensive Coverage

Pays for non-collision damage like theft, vandalism, fire, hail, and animal strikes (minus your deductible). It’s often required on financed/leased cars. Learn more.

Contributory Negligence

A stricter legal rule used in a small number of states where being even slightly at fault can limit or bar recovery, depending on the state’s standard.

Continuous Coverage Discount

A discount some insurers offer for maintaining uninterrupted insurance over time. Learn more.

Coverage Limits

The maximum amounts your policy will pay for covered losses under each coverage. Learn more.

Custom Parts & Equipment Coverage

Optional coverage that helps protect aftermarket modifications and custom equipment beyond standard policy limits. Learn more.

D

Declarations Page

A summary sheet showing your coverages, limits, deductibles, vehicles, drivers, and policy dates. It’s the quickest way to verify what you actually bought. Learn more.

Deductible

The amount you pay out of pocket before your insurer pays on a covered claim (for coverages with deductibles). Learn more.

Defensive Driving Discount

A discount available from some insurers for completing an approved defensive driving course. Learn more.

Demand Letter

A written request that outlines what you’re seeking and why (often used in claims disputes). Learn more.

Depreciation

The decrease in your car’s value over time due to age, mileage, and wear. Depreciation is one reason total-loss payouts are usually based on ACV instead of what you originally paid.

Diminished Value

The loss in a car’s market value after an accident, even if it’s repaired. Learn more.

Direct Repair Program (DRP)

An insurer’s network of preferred body shops. Using a DRP shop can streamline repairs, but you can often choose your own repair facility depending on your state and claim.

Disappearing Deductible

A feature where your deductible may reduce over time or with safe driving, depending on the insurer’s rules. Learn more.

Down Payment

An upfront portion of your premium paid when starting a policy or payment plan. The remaining balance is typically paid in installments. Learn more.

Driving Record

Your history of tickets, violations, and suspensions, often used by insurers when pricing policies. Learn more.

DUI (Driving Under the Influence)

A serious violation that commonly triggers higher rates, SR-22/FR-44 requirements, and underwriting restrictions. Learn more.

E

Electronic Proof of Insurance

A digital insurance ID card displayed on your phone (validity varies by state and situation). Learn more.

Emergency Roadside Assistance

Optional coverage or service that can help with towing, jump-starts, lockouts, fuel delivery, and flat tire changes. Learn more.

Endorsement

An add-on that changes your policy (adding, removing, or modifying coverage). Learn more.

Estimate

A written calculation of repair costs based on visible damage. Estimates can change if additional damage is discovered after teardown (often handled through a supplement).

Excess Liability

Liability protection above your underlying auto policy limits. Personal umbrella insurance is a common form of “excess” liability coverage.

Excluded Driver

A person specifically listed on the policy as not covered when driving the insured vehicle. Learn more.

Exclusion

A policy provision that lists what is not covered. Common exclusions can include intentional acts, certain business uses, or racing—details depend on your policy and state rules.

F

Fault Determination

The process of deciding who caused (or contributed to) an accident. Insurers use statements, photos, police reports, and other evidence, but the “final” fault outcome can depend on state law and court decisions. Learn more.

Fire Damage

Damage from fire is typically covered under comprehensive coverage (subject to deductible and exclusions). Learn more.

First-Party Claim

A claim you make under your own policy (for example, collision, comprehensive, MedPay, or PIP). This is different from a liability claim someone makes against you.

Flood Damage

Flooding is commonly handled under comprehensive coverage, not collision or liability. Learn more.

Force-Placed Insurance

Insurance a lender may place on a financed vehicle if they believe you don’t have the required coverage. Learn more.

FR-19

A form used in some states (notably Virginia) to verify liability coverage after certain incidents. Learn more.

FR-44

A state-required filing similar to an SR-22 but typically with higher liability limits, often after serious DUI-related offenses. Learn more.

Fraud

Intentional deception to obtain insurance benefits, which can lead to denial and legal penalties. Learn more.

Full Coverage

A common phrase that usually means liability + collision + comprehensive, but it’s not a standardized policy type. Learn more.

Full Glass Coverage

Optional coverage that may reduce or eliminate out-of-pocket costs for windshield/glass repairs or replacements. Learn more.

G

Gap Insurance

Coverage that can help pay the difference between your car’s ACV and what you owe on a loan/lease if the car is totaled. Learn more.

Gaps in Coverage

A break in insurance that can increase future premiums and may create legal/financial risk while uninsured. Learn more.

Garaging Address

The primary location where your vehicle is kept (often overnight). Garaging location can impact rates because claim frequency, theft, and repair costs vary by area. Learn more.

Glass Deductible

The out-of-pocket amount you pay for glass claims under comprehensive coverage (if your policy applies a deductible). Some policies offer special glass options that reduce or waive this cost. Learn more.

Good Driver Discount

A discount offered to drivers who maintain a clean record for a set period of time. Learn more.

Good Student Discount

A discount some insurers offer for student drivers who meet academic requirements (such as a GPA threshold or other eligibility criteria). Learn more.

Grace Period

A limited window after a due date where payment may still be accepted before a policy lapses (rules vary). Learn more.

H

Hail Damage

Hail-related damage is typically covered under comprehensive coverage (minus your deductible). Learn more.

High-Risk Auto Insurance

Insurance designed for drivers who have trouble qualifying for standard coverage due to violations, claims, lapses, or other factors. Learn more.

Hit-and-Run

An accident where the at-fault driver leaves the scene; coverage often depends on your state and whether you carry UM/UIM or collision. Learn more.

Household Member

Someone who lives with you (often defined as a resident relative or household resident). Many insurers require you to list household members of driving age, even if they rarely drive your car.

Hurricane Damage

Vehicle damage from hurricanes is often handled under comprehensive coverage depending on the type of damage. Learn more.

I

Independent Agent

An agent who can shop multiple insurers to find coverage and pricing options. Learn more.

Insurable Interest

The requirement that you would suffer a financial loss if the insured vehicle were damaged, stolen, or destroyed. Learn more.

Insurance Coverage

The protections your policy provides, including what’s covered, what’s excluded, and how claims pay out. Choosing coverage is balancing price and risk. Learn more.

Insurance Lapse

A period where your policy is not active (often due to nonpayment or cancellation), which can lead to higher future rates. Learn more.

Insurance Quote

An estimate of what you’ll pay for a policy based on your info, coverages, and underwriting factors. Learn more.

Insurance Verification

Methods states and lenders use to confirm you have active insurance (for registration, reinstatement, loan/lease requirements, or compliance checks). Learn more.

Insured

A person covered under the policy. Depending on the situation, “insured” could mean the named insured, resident relatives, permissive drivers, or others as defined by the policy language.

Insurer

The insurance company that issues your policy and agrees to pay covered claims under the contract.

J

Joint and Several Liability

A legal concept that may allow an injured party to collect the full amount of damages from one at-fault party, even if others also share fault—rules vary by state.

K

Key Replacement Coverage

An optional add-on (or benefit) that helps pay to replace lost or stolen car keys/key fobs and reprogramming, up to plan limits and conditions. Learn more.

L

Liability Insurance

Coverage that pays for injuries or damage you cause to others. It’s required in most states and doesn’t pay to fix your own car. Learn more.

Liability Limits

The maximum your insurer will pay for injuries and property damage you cause under liability coverage. Learn more.

Lienholder

A lender with a financial interest in your vehicle; they may require certain coverages until the loan is paid off. Learn more.

Like Kind and Quality (LKQ) Parts

A term often used in auto repairs meaning parts of similar type and quality to what your vehicle had before the loss. LKQ parts may include used or reconditioned parts, depending on policy language and state rules.

Loss of Use

A claim for the value of not being able to use your vehicle while it’s being repaired or replaced after a covered loss. Learn more.

Loss Payee

A party (often a lender or leasing company) listed on the policy that may be paid if the vehicle is totaled or if a claim payment affects their financial interest. Learn more.

Low Mileage Discount

A discount some insurers offer if you drive fewer miles than average. Learn more.

M

Mechanical Breakdown Insurance (MBI)

Optional coverage that can help pay for certain mechanical repairs, similar to an extended warranty (but with policy rules). Learn more.

Medical Payments Coverage (MedPay)

Coverage that helps pay medical expenses for you and your passengers after an accident, regardless of fault (where available). Learn more.

Mini-Tort

A term most commonly associated with Michigan auto claims. It generally refers to a limited right to recover certain out-of-pocket vehicle damage costs from an at-fault driver, subject to specific rules and limits.

Minimum Coverage

The least amount of insurance your state requires to drive legally. Learn more.

Misrepresentation

Providing false or misleading information on an application or claim, which can lead to cancellation or claim denial. Learn more.

Modified Car Insurance

Insurance considerations and optional coverages for vehicles with performance or cosmetic modifications. Learn more.

Motor Vehicle Report (MVR)

A record (typically from a state DMV or similar agency) showing a driver’s license status, violations, and sometimes accidents. Insurers commonly use an MVR during underwriting and renewals.

Multi-Car Discount

A discount many insurers offer when you insure more than one vehicle on the same policy. Learn more.

N

NAIC Number

A unique identifier assigned to insurance companies, often used in filings and consumer research. Learn more.

Named Insured

The person (or people) listed as the primary policyholder(s) on the declarations page. Learn more.

Natural Disasters

Events like storms, floods, and wildfires that may be covered under comprehensive depending on the peril and policy. Learn more.

Negligence

A failure to use reasonable care that results in harm or damage. Negligence is the foundation of most at-fault (tort) auto claims and often ties directly into fault determination.

New Car Replacement Insurance

Optional coverage that may replace a totaled new car with a new one (rather than paying ACV), within certain rules. Learn more.

Newly Acquired Vehicle

A vehicle you just purchased or added to your household. Many policies provide automatic coverage for a limited time, but you usually must notify your insurer promptly for the coverage to continue. Learn more.

No Deductible (Zero Deductible)

A structure where your out-of-pocket deductible is reduced to $0 for certain coverages or situations (if offered). Learn more.

No-Fault Insurance

A system where your own policy pays certain injury-related costs regardless of who caused the crash (varies by state). Learn more.

Non-Owner Car Insurance

Liability coverage for drivers who don’t own a car but need insurance to drive occasionally or meet legal requirements. Learn more.

Non-Renewal

When an insurer chooses not to renew your policy at the end of its term (not the same as cancellation mid-term). Learn more.

Non-Standard Auto Insurance

Coverage designed for higher-risk drivers who may not qualify for standard underwriting. Learn more.

O

OEM Parts

Original Equipment Manufacturer parts—made by the vehicle’s manufacturer—sometimes requested after an accident repair. Learn more.

Other Insurance Clause

A policy provision that explains how coverage applies when more than one policy could cover the same loss (for example, primary vs. excess, or how benefits coordinate).

Other Than Collision (OTC)

Another term commonly used to describe comprehensive coverage (non-collision losses). Learn more.

Out-of-Pocket Repair

Paying for vehicle repairs yourself instead of filing a claim, often to avoid a surcharge or rate increase. Learn more.

P

Paid-In-Full Discount

A discount some insurers offer when you pay the entire policy term premium upfront rather than using monthly installments. Learn more.

Pain and Suffering

Non-economic damages (like pain and emotional distress) sometimes included in injury settlements, depending on state law and the claim. Learn more.

Paperless Discount

A discount (or billing preference) some insurers offer when you choose electronic documents and notifications instead of mailed paper statements. Learn more.

Pay-Per-Mile Insurance

A type of usage-based insurance where your premium is tied partly to how many miles you drive, usually with a base rate plus a per-mile charge. Learn more.

Permissive Use

A policy concept that may allow occasional drivers to be covered when they have permission to use the insured vehicle. Learn more.

Personal Effects Coverage

Optional coverage that may help replace personal belongings inside your vehicle after certain losses. Learn more.

Personal Injury Protection (PIP)

No-fault-style coverage (in some states) that helps pay medical expenses and related costs after an accident. Learn more.

Personal Umbrella Insurance

Extra liability protection that sits on top of auto (and often home) coverage for larger claims. Learn more.

Policy Expiration Date

The date your policy term ends (often 6 or 12 months), after which it renews or ends. Learn more.

Policyholder

The person who owns the insurance policy contract and is responsible for payments and updates. Learn more.

Policy Number

A unique identifier assigned to your insurance policy, used for billing and claims. Learn more.

Premium

The amount you pay for insurance (monthly, semiannually, or annually), based on risk factors and chosen coverages. Learn more.

Primary Driver

The person who drives the vehicle most often; listing the correct primary driver helps avoid pricing or claim issues. Learn more.

Proof of Financial Responsibility

Evidence required by a state that you can pay for damages you cause—often satisfied by having auto liability insurance. Learn more.

Pro Rata Cancellation

A cancellation method where the premium refund (or earned premium) is calculated proportionally based on how long the policy was in force. State rules and policy terms can affect the final amount.

Property Damage Liability (PD)

Pays to repair or replace the other person’s vehicle or property you damage. Low limits can leave you paying out of pocket. Learn more.

Property Protection Insurance (PPI)

A Michigan-specific coverage that pays for damage your car causes to stationary property (with special rules). Learn more.

Q

Quoted Premium

The price shown on an insurance quote based on the information provided at the time. Final premium can change after underwriting verifies driving history, garaging address, vehicle details, and other factors.

R

Rate Factors

Variables insurers use to price your policy, such as location, driving record, claims history, vehicle, and mileage. Learn more.

Rate Filing

The process insurers use to submit rates and rating plans to a state insurance department (in states where filing/approval is required). This helps regulate how rates are set and updated.

Rate Increase

An increase in premium that can happen after claims, tickets, market changes, or underwriting updates. Learn more.

Rebuilt Title

A title branding that indicates a vehicle was previously salvage and later repaired and re-titled. Learn more.

Reinstatement

Restoring a canceled policy (or getting coverage back) after a lapse or cancellation, if allowed. Learn more.

Rental Car Insurance

Coverage options when renting a vehicle, including what your auto policy or credit card may cover. Learn more.

Rental Reimbursement

Optional coverage that helps pay for a rental car while your vehicle is in the shop for a covered claim. Learn more.

Repair Authorization

Approval to start repairs, often tied to an estimate and parts plan. Some shops require signed authorization before beginning work on your vehicle.

Replacement Cost Policy

A payout approach that replaces the insured item with a comparable new one instead of paying depreciated value (varies by coverage/product). Learn more.

Reservation of Rights

A notice from an insurer stating it will investigate or handle a claim while reserving the right to later deny coverage if the facts or policy terms support a denial.

Rideshare Endorsement

An optional add-on to your personal auto policy that helps cover the “gap” when you drive for rideshare apps (like Uber or Lyft) and the company’s insurance doesn’t fully apply. Learn more.

Roadside Assistance

Help for breakdown-style events (towing, jump-starts, lockouts, fuel delivery), sometimes as an add-on or membership. Learn more.

S

Salvage Title

A title branding typically issued when a car is declared a total loss and meets a state’s threshold for being “salvage.” Learn more.

Settlement

The final amount paid to resolve a claim, often negotiated based on damages, coverage, and evidence. Learn more.

Split Limits

A liability limits structure that separates bodily injury per person, bodily injury per accident, and property damage into different caps (for example, “25/50/25”). This differs from combined single limits (CSL).

SR-22

A state-required certificate filed by your insurer proving you carry the minimum liability coverage required by law. Learn more.

Stacked Coverage

A feature (often for UM/UIM) that can combine limits across vehicles or policies, depending on state rules and policy language. Learn more.

Standard Coverage

Insurance that fits typical underwriting guidelines (as opposed to non-standard/high-risk markets). Learn more.

State Minimum Requirements

The minimum auto liability coverage levels required by law in each state. Learn more.

Stated Value

A valuation method where a stated amount is used for pricing, but payout may still be limited by policy terms. Learn more.

Statute of Limitations

A legal deadline for filing a lawsuit (and sometimes certain insurance-related claims) after an accident. The timeframe and rules vary widely by state and claim type.

Subrogation

When your insurer seeks reimbursement from the at-fault party (or their insurer) after paying your covered claim. Learn more.

Supplemental Estimate

An additional repair estimate created after hidden damage is found during teardown or repairs. Supplements are common in collision claims and can change the total repair cost and timeline.

Surcharge

An added premium amount after certain events (like at-fault accidents or major tickets), depending on insurer/state rules. Learn more.

Surety Bond (As an Alternative to Insurance)

In some situations, a surety bond may be discussed as a financial responsibility option, but it’s not the same as a standard auto policy. Learn more.

T

Telematics

Programs that use driving data (often from a phone app or device) to personalize pricing or discounts. Learn more.

Temporary Substitute Vehicle

A vehicle you use temporarily while your insured car is out of normal use due to breakdown, repair, servicing, loss, or destruction. Many policies define when (and how) coverage transfers to a temporary substitute. Learn more.

Theft Coverage

Theft is typically covered under comprehensive coverage, subject to deductible and policy conditions. Learn more.

Third-Party Auto Insurance

Coverage that pays for damage you cause to others (i.e., liability coverage), sometimes called “third-party” coverage. Learn more.

Total Loss

When repair costs meet or exceed a threshold and the vehicle is declared “totaled.” Learn more.

Total Loss Threshold

A state guideline (often percentage-based) used to help determine when a vehicle becomes a total loss. Learn more.

Tort System

A legal system where the at-fault driver’s insurance is generally responsible for damages, unlike no-fault systems. Learn more.

Towing Coverage

Optional coverage or service that helps pay for towing after certain breakdowns or incidents (limits vary). Learn more.

Traffic Violation

Tickets and violations can impact premiums depending on severity, frequency, and insurer rules. Learn more.

Transportation Expenses

Costs related to getting around after a covered loss (such as rentals, rideshares, or public transit). Your policy may address these through rental reimbursement or related provisions, subject to limits and conditions. Learn more.

U

Underinsured Motorist Coverage (UIM)

Coverage that can help when the at-fault driver has insurance, but not enough to cover your damages. Learn more.

Underwriter

The insurance professional (or underwriting team) responsible for evaluating risk and deciding whether to offer coverage, set terms, or apply restrictions based on the insurer’s guidelines.

Underwriting

The process insurers use to review applications, verify details, and assess risk. Underwriting can happen at purchase, at renewal, and sometimes after major policy changes.

Uninsured Motorist Bodily Injury (UMBI)

UM coverage focused on injuries to you and your passengers caused by an uninsured driver. Learn more.

Uninsured Motorist Coverage (UM)

Coverage that can help pay for injuries/damages if you’re hit by a driver with no insurance (details vary by state). Learn more.

Uninsured Motorist Property Damage (UMPD)

UM coverage that can help pay for vehicle/property damage caused by an uninsured driver (availability varies). Learn more.

Usage-Based Insurance (UBI)

Insurance priced partly on measured driving behavior and/or mileage rather than only traditional rating factors. Learn more.

V

Vandalism

Intentional damage to your vehicle that is typically covered under comprehensive coverage (minus deductible). Learn more.

Vehicle Identification Number (VIN)

A unique identifier assigned to your vehicle. Insurers use the VIN to confirm the exact make/model/trim, safety features, and other details that can affect coverage, claims, and pricing.

Vehicle Safety Ratings

Safety performance scores that can influence repair/injury risk and may impact premiums. Learn more.

Vehicle Use Classification

How the insurer categorizes your driving (commute, pleasure, business, rideshare, etc.). Misstating vehicle use can lead to pricing issues or claim complications.

VIN Etching Discount

A discount some insurers offer when VIN etching helps deter theft or improves recovery odds (if credited). Learn more.

W

Waiver of Deductible

A feature (available in some states/policies) where your deductible may be reduced or waived in specific situations—such as being hit by an uninsured driver, or after a qualifying claim handled through certain programs. Terms vary widely by insurer and state. Learn more.

Wear and Tear

Normal aging and maintenance issues that auto insurance typically does not cover. Learn more.

Windshield Replacement

Windshield repair/replacement may be covered by comprehensive or full-glass coverage, depending on your policy and deductible. Learn more.

Witness Statement

A written or recorded account from a bystander that can help support your version of events in a claim dispute. Learn more.

Work-From-Home Discount

A discount some insurers offer if reduced commuting lowers your annual mileage. Learn more.

Y

Young Driver Surcharge

An added premium amount commonly applied to youthful or newly licensed drivers due to statistically higher claim frequency. Discounts and training programs can sometimes offset part of the cost.

Z

Zip Code Rating

Insurers often use your garaging zip code as a major pricing factor due to claim frequency, theft, and repair cost patterns. Learn more.