Auto Insurance: Glossary of Terms – Part – III


This is a continuation of the glossary of terms related to auto or vehicle insurance. Hope that this compilation helps you in sifting the jargon out of the prose and assist in understanding the terminology in a better manner and perhaps hae an upper hand as far as vehicle insurance is concerned.

  • Drivers training discount: This is a discount that may be offered if a particular type of training involving driving is undertaken by the insured individual.
  • Excess: This is another name for deductible and is a dollar amount that the insured person has to pay when a claim is filed, before the insurance company starts paying for any damages.
  • Extras: These are additional coverage available which extend beyond the traditional protection that is offered in an auto insurance policy.
  • Exclusions: These are the losses for which the insurance company may not pay; for instance nuclear war or damage due to the same.
  • Emergency roadside service coverage: This is a type of cover that is usually an additional protection offered in order to cover the costs associated with towing and tire repair.
  • GAP coverage: This is a type of cover that pays the amount that is deficient between the amount owed to a lease company and the actual worth of the car. Such cover is usually handy in the early days of the contract when the worth of the vehicle drops dramatically within a short period of time.
  • Garage location: The location where the vehicle is parked when it is not being used.
  • Good student discount: This is a discount offered to those students who are in the top twenty percent of their class.
  • Hit and run: This is a type of accident where typically a driver causes an accident and then flees the scene.
  • Hazard: The chance or a situation or an obstacle that increases the risk or chance of an accident happening.
  • Identification card: This is a card that may be issued by your insurance company identifying you as the insured with some unique information on the card.
  • Indemnification: This can be defined as the providing of compensation in order to restore an individual or an entity back to the same situation before the loss occurred.
  • Insurance fraud: This is the falsifying of facts in order to be compensated by the insurance company in a fraudulent manner.
  • Inspection: In context of auto insurance, inspection can be defined as the checking and verification of a vehicles condition.
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