Term To Know

Auto Insurance Terms

Collision Coverage
    The part of an automobile insurance policy that covers damage to a vehicle caused by an impact with another vehicle.

Comprehensive Coverage
    The part of an automobile insurance policy that covers damage to a vehicle caused by miscellaneous hazards other than collision.

Deductible
    Amount that must be paid out of pocket by the insured for covered losses.

Driver Education Credit
    Discount on auto insurance premiums.

Liability insurance
    Coverage for sums due to bodily injuries or property damage or financial losses caused to other people.

Liquidity
    The ability to convert an asset to cash quickly

No-Fault Insurance
    Auto insurance laws requiring insurance companies to cover their policyholders' losses in the event of an accident, regardless of causing party.

Personal Liability Insurance
    Covers financial losses you suffer when you accidentally cause damages to others or their property.

Personal Property
    Term generally includes all the contents of your household (ie. furniture, jewelry, etc.). Coverage Automatically set at 50 % of your coverage limit for your house. You may choose to raise your coverage. This coverage is generally subject to a deductible.

Principal Residence
    The home that a taxpayer lives in.

Property Damage Liability Coverage
    Covers you up to the policy limit for losses that result when you damage or destroy someone else's personal property. Required in most states.

Informaton Provided By Insurance Information Institute
http://www.iii.org