Auto insurance can be a complicated subject and to understand it in a better manner it becomes important to understand the jargon and terminology used in this field. Here is a compilation of glossary of terms related to auto insurance that you may find beneficial.

• Collision coverage: This is an optional part of vehicle insurance that covers you in case you meet with an accident or collide with a stationary object. It does not matter who is at fault in such cases. However, the catch is that such additional coverage may carry a deductible which is an amount payable upfront in case such a mishap occurs for the insurance company to start compensating.
• Car insurance: This is an insurance that protects the car against any type of loss.
• Comprehensive physical damage coverage: This type of coverage is comprehensive and protects in cases of vandalism, fire, theft, falling objects, flood, or hail. In this case as well there may be a deductible applicable.
• Claimant: Claimant is a person or entity who asserts any rights of recovery.
• Collision Deductible waiver: This is a type of coverage that waives the deductible in case you are hit by an uninsured motorist.
• Conditions: These are the obligations of the insurance provider and the insured as specified by the insurance contract.
• Claim adjuster: A claim adjuster is a professional who is hired in order to investigate a claim.
• Coverage: These are the benefits and protection which are offered by the insurance company.
• Covered person: The person who is named as the insured in the insurance policy is called the covered person.
• Deductible: Deductible is the amount determined by the policyholder that must be paid before the insurance company starts to pay for any losses. Usually the amount of the deductible is inversely proportional to that of the premiums. Therefore the higher the premiums; lower will be the deductible.
• Depreciation: The loss of the worth or value of the vehicle due to normal or excess wear and tear over a period of time. The depreciated value of a car or a vehicle is an important factor in lease contracts.
• Driving record: This is a record of your driving history, comprising of information related to any accidents or offences, and may be used by insurers to determine the risk involved in the insurance contract.
• Discount: This is a reduction in your premiums based on certain criteria which may be beneficial to the insurance provider.