Auto Definitions Continued
An insurance coverage limit is selected by you and is the most an insurance company will pay for damages or injuries
that apply to the coverage. Most states have laws that specify the minimum limit that must be purchased for each
required insurance coverage.
Loan/Lease Payoff Coverage
Loan/Lease Payoff coverage, sometimes called "gap" coverage, pays the difference between what you owe on your
vehicle and what your insurance pays if your vehicle is declared a total loss or stolen and not recovered, less your
Comprehensive or Collision deductible. Learn more about Loan/Lease Payoff coverage.
Medical Payments (MedPay) Coverage
MedPay is an optional insurance coverage that pays for reasonable and necessary medical and funeral expenses for
covered persons. These expenses must be incurred as a result of an auto accident.
The first person in whose name the insurance policy is issued.
A person who is not the primary or principal driver of the insured vehicle is an occasional driver.
Personal Injury Protection (PIP) Coverage
PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and
funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle.
PIP is the basic coverage implemented in no-fault automobile insurance states.
Policy Expiration Date
Your current insurance policy ends on your policy expiration date, which is found on your current policy documents,
Declarations Page (Dec Page), insurance identification card or recent cancellation notice. This date should not be
confused with payment due dates.
The length of time your policy is active and in force is your policy term.
A premium is the amount of money paid to an insurance company in return for insurance protection.
A primary residence is the place where you will live for the majority of your policy term.
Primary use is how you mainly use your vehicle. Primary use options include to/from work, business, pleasure or farm
The person who drives the car most often is the principal driver.
Property Damage Liability Coverage (PD)
If an insured person is legally liable for an accident, PD coverage pays for damage to others' property resulting from
the accident. PD also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.
Rental Reimbursement Coverage
Rental Reimbursement provides rental car coverage if you have a claim that is covered under Comprehensive or
Collision coverage. Daily rental amounts are subject to the limit purchased.
Roadside Assistance Coverage
Roadside Assistance provides services such as towing, flat tire change, locksmith service and battery jump-start to
customers, who can elect the service for an additional premium if it is not already included with their insurance
policy. Learn more about Roadside Assistance.
Some states base salvage titles on the extent of damage a vehicle has sustained.
damage to a vehicle must equal or exceed 75 percent of the vehicle's retail value in order for it to require a salvage
title, according to state law.
Other states, such as Florida, require a vehicle to have a salvage title if the insurance company declared the vehicle
a total loss. These titles generally indicate whether the vehicle is "rebuildable" (can be repaired and driven on the
road) or "not rebuildable" (must be sold for parts).
Other states "brand" or "notate" the vehicle's title when the estimate of damages reaches a certain percentage of
the vehicle's retail value (in New York, it is 75 percent), even if the vehicle has not been declared a total loss and is
able to be repaired.
Other states have no guidelines for issuing salvage titles.
State laws determine if a vehicle requires a salvage title.
Second Named Insured
The named insured or listed agent/broker on a policy may request to designate any other person listed on the policy
as a second named insured. The second named insured has the same coverage under the policy as the named insured.
An SR-22 is a document required by the court that demonstrates proof of financial responsibility for persons convicted
of certain traffic violations.
Uninsured Motorist Coverage (UM)
If a driver or owner of a vehicle does not have insurance and is legally liable for an accident, you can use UM coverage
for injuries, including death, that you, your resident relatives, and occupants of your insured vehicle sustain, up to the
limits you select. Certain exclusions may apply. Refer to your policy.
Underinsured Motorist Coverage (UIM)
If a driver or owner of a vehicle is legally liable for an accident but does not have enough insurance, you can use UIM
coverage for injuries, including death, that you, your resident relatives, and occupants of your insured vehicle sustain,
up to the limits you select. Certain exclusions may apply. Refer to your policy.
Uninsured/Underinsured Motorist Property Damage Coverage (UMPD)
If driver or owner of a vehicle is legally liable for an accident but does not have insurance or does not have enough
insurance, you can use UMPD to cover damage to your insured vehicle, up to the limits you select. In some states,
UMPD is available as an alternative to Collision coverage. Certain exclusions may apply. Refer to your policy.
Vehicle Identification Number (VIN)
The Vehicle Identification Number (VIN) for your vehicle is usually found on the driver's side of your dashboard, the
vehicle registration or the title. The VIN is a combination of 17 letters and numbers that can be used to identify the
make, model and year of a car.