Auto Insurance Glossary

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Auto Insurance Agents vs. Brokers in 2025 (Differences Explained)

Auto insurance agents vs. brokers offer different ways to approach buying insurance. Agents work for one insurance company and can only offer policies from that company, using their expertise to help you understand the options available within that insurer. Brokers, however, work independently, comparing policies from multiple companies to find the best deal for you,...

Auto insurance agents vs. brokers offer different ways to ap...

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What is the difference between a deductible and a premium in auto insurance?

Some of the terms around auto insurance can be outright confusing. However, you don’t have to puzzle about the meaning of certain terms. If you’ve ever asked yourself about the difference between a deductible and a premium in auto insurance, let’s explore the terms and demystify some of the jargon. You don’t have to be...

Some of the terms around auto insurance can be outright conf...

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Captive vs. Independent Auto Insurance Agents in 2025 (Differences Explained)

It’s important to understand the key differences between captive vs. independent auto insurance agents. Captive agents work for just one insurance company. They can offer deep knowledge of that company’s options and with customer satisfaction rates between 85%-90%. On the other hand, independent agents can work with multiple insurance companies, giving you more choices to...

It’s important to understand the key differences betwe...

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What does it mean when a policy is fully paid up?

When your auto insurance policy is fully paid up, your coverage is up-to-date. As a result, you won’t have to pay any more premiums until your next renewal date. Most insurance companies allow drivers to pay their premiums monthly, biannually, or annually. If you choose the paid up option, that means you will pay your...

When your auto insurance policy is fully paid up, your cover...

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Auto Insurance Deductible in 2025 (Important Details Explained)

An auto insurance deductible is the out-of-pocket amount before your insurance covers the rest of a covered claim. It plays a significant role in determining your premiums. Typically, higher deductibles result in lower monthly payments. Understanding deductibles is essential as they affect various types of coverage, including collision and comprehensive insurance. Deductibles usually range from...

An auto insurance deductible is the out-of-pocket amount bef...

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Auto Insurance Deductible: Simply Explained (2025)

Separate from your monthly or annual auto insurance policy payments, car insurance deductibles are agreed-upon amounts policyholders pay for certain types of claims before the insurance company steps in. Only specific auto insurance coverages have deductibles, like collision and comprehensive insurance. So if you invest in full coverage insurance, knowing how deductibles work is vital...

Separate from your monthly or annual auto insurance policy p...

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Non-Cancellable Auto Insurance in 2025 (Coverage Explained)

Non-cancellable auto insurance provides policyholders with the assurance that their coverage will not be terminated as long as premiums are paid on time. This protection eliminates the risk of cancellations due to claims, changes in your driving history, or insurer decisions. Additionally, it offers stability in premium rates, safeguarding you from unexpected hikes and ensuring...

Non-cancellable auto insurance provides policyholders with t...

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What is Guaranteed Renewable Auto Insurance? (2025)

Key Takeaways: A guaranteed renewable automobile insurance policy guarantees your future coverage The only way a guaranteed renewability policy can be canceled is if you fail to pay your premium A guaranteed renewal policy doesn’t guarantee a fixed rate Guaranteed renewability policies are often bought by consumers buying term life insurance Guaranteed renewable auto car insurance is a policy that guarantees...

Key Takeaways: A guaranteed renewable automobile insurance ...

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Commercial Lines Insurance in 2025 (Coverage Explained)

Commercial lines insurance is a type of property and casualty insurance policy offered to businesses. The policy can cover a range of insurance needs for the business, including everything from auto insurance for the company’s fleet of vehicles to workers’ compensation insurance for employees. Often thought of as insurance for business, these lines of commercial...

Commercial lines insurance is a type of property and casualt...

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80/20 Auto Insurance Settlements in 2025 (Complete Guide)

An 80/20 insurance settlement splits fault in an accident, assigning 80% of the blame to one driver and 20% to the other. Insurance companies use this ratio when they determine one party was mostly at fault, but the other driver also contributed. These settlements affect compensation, with the at-fault driver responsible for covering a larger...

An 80/20 insurance settlement splits fault in an accident, a...

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Branded Title Auto Insurance in 2025 (What You Should Know)

Branded title auto insurance focuses on insuring vehicles with titles marked due to significant damage, such as accidents, flooding, or other major events. These titles, including salvage, lemon, or water damage designations, signal potential risks that can complicate insurance coverage. Insurers often limit coverage options, making comprehensive and collision insurance difficult or impossible. Liability insurance...

Branded title auto insurance focuses on insuring vehicles wi...

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Assigned Risk Auto Insurance in 2025 (Coverage Explained)

Assigned risk auto insurance provides crucial choices for drivers classified as high-risk, like those with numerous offenses or DUIs, who find difficulty in getting standard policies. This kind of insurance fulfills minimum state requirements, making sure that even drivers rejected by many companies can keep legal coverage. Check auto insurance requirements by state for high-risk...

Assigned risk auto insurance provides crucial choices for dr...

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FS-1 Document for Auto Insurance in 2025 (Important Details Explained)

The FS-1 document for auto insurance in North Carolina is essential for proving compliance with state insurance requirements, especially after a lapse in coverage. This certificate of insurance confirms that drivers meet North Carolina’s minimum liability coverage standards and demonstrate financial responsibility. Drivers often need the FS-1 to register or title a vehicle or to...

The FS-1 document for auto insurance in North Carolina is es...

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Clean Driving Record: What it Means for 2025 (+How it Affects Your Rates)

Maintaining a clean driving record is one of the best ways to lower your auto insurance premiums. Insurers tend to offer more affordable rates to drivers with a safe driving record, as they are considered lower risk. While other factors, such as age, location, vehicle type, etc., play their part in determining the rates, a...

Maintaining a clean driving record is one of the best ways t...

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Auto Insurance Redlining in 2025 (What You Should Know)

Auto insurance redlining is when insurance companies charge higher rates or deny coverage based on ZIP codes, which often hurts minority and low-income neighborhoods. Even though laws like the Fair Housing Act and the Civil Rights Act ban race-based discrimination, studies show that drivers in mostly Black neighborhoods still pay about $154 more per year...

Auto insurance redlining is when insurance companies charge ...

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Auto Insurance Misrepresentation in 2025 (What You Need to Know)

Auto insurance misrepresentation can result in some really serious issues. It can be costly if you submit wrong or false information on your insurance application, such as lies about your driving history or your car details. They can deny your claims, cancel your policy, and even penalize you with fines. You should always speak the...

Auto insurance misrepresentation can result in some really s...

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Auto Insurance Binders in 2025 (Term Explained)

An auto insurance binder is a temporary proof of insurance your insurer provides while the underwriting process is completed. It allows you to legally drive your vehicle even though your full policy has not yet been finalized. The binder serves as coverage in the event of an accident and can be used as proof of...

An auto insurance binder is a temporary proof of insurance y...

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Certificate of Financial Responsibility (COFR) in 2025 (Important Details Explained)

A certificate of financial responsibility proves your ability to cover accident-related costs, ensuring you comply with state financial responsibility laws. Failing to show proof can result in penalties such as fines, license suspension, or vehicle impoundment. In some situations, an SR-22 filing or bond is necessary to meet these requirements. It’s crucial to understand when...

A certificate of financial responsibility proves your abilit...

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Umbrella Insurance in 2025 (Coverage Explained)

Umbrella insurance provides extra protection beyond your regular policies. It helps cover costs like legal fees, accidents, or lawsuits that your car or home insurance might not fully pay for. For around $18 a month, you can get $1 million or more in coverage. This type of insurance is especially useful if you have valuable...

Umbrella insurance provides extra protection beyond your reg...

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Preferred Auto Insurance in 2025 (Coverage Explained)

Preferred auto insurance offers great coverage to drivers who remain clean and perfect in their performance. For most, their premium tends to be almost $55 per month, so their premiums are on the lesser side for driving safely. Insurance companies will offer discounted premiums and supplemental coverage, such as roadside assistance coverage, including lower deductibles...

Preferred auto insurance offers great coverage to drivers wh...

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