Auto Insurance Glossary

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What is the difference between an auto insurance agent and an auto insurance broker?

Auto insurance is necessary for anyone who owns a car, and finding the right policy can be challenging. Getting help is also challenging, as you need to know the differences between an auto insurance company vs. an auto insurance broker, and an auto insurance agent. Auto insurance agents and brokers can help you navigate the market...

Auto insurance is necessary for anyone who owns a car, and f...

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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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What is the difference between a captive and independent auto insurance agent?

If you are researching auto insurance companies to see which one offers the best rates, you might have noticed a difference in the types of agents each company has on staff. This may cause you to wonder “What is the difference between a captive vs independent auto insurance agent?” Keep reading to learn the answer...

If you are researching auto insurance companies to see which...

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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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What is an insurance binder?

If you are getting ready to buy a new car (or home), you may need to provide the seller or finance company with proof of insurance. However, some auto insurance companies take a couple of days to process paperwork for a policy. Therefore, the company may issue an insurance binder for you to use temporarily....

If you are getting ready to buy a new car (or home), you may...

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What is an auto insurance deductible and how does it work?

Understanding auto insurance is essential to ensuring that you can obtain the right coverage at an affordable price. One aspect of auto insurance that we know can be confusing is the auto insurance deductible. So what is a car insurance deductible, and how does a car insurance deductible work? Furthermore, when do you pay the...

Understanding auto insurance is essential to ensuring that y...

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Auto Insurance Deductible: Simply Explained (2024)

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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Affordable Non-Cancellable Auto Insurance (2024)

Here’s what you need to know… A non-cancellable auto insurance policy is one where you are guaranteed future coverage Non-cancellable insurance policies are generally only available as individual policies Rates for non-cancellable insurance are not likely to change unless you make changes to the policy In your search for insurance, you may have run into...

Here’s what you need to know… A non-cancellable ...

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What is Guaranteed Renewable Auto Insurance? (2024)

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 ...

Affordable Commercial Lines Insurance (2024)Post

Affordable Commercial Lines Insurance (2024)

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...

80/20 Auto Insurance Settlement: Simply Explained (2024)Post

80/20 Auto Insurance Settlement: Simply Explained (2024)

If you’ve been dealing with a car insurance claim, then you may have been approached with an offer for an 80/20 insurance settlement. What is an 80/20 insurance settlement? Should you accept an 80/20 auto insurance claim? Today, we’re explaining everything you need to know about an 80/20 car insurance settlement and how insurance claims...

If you’ve been dealing with a car insurance claim, then yo...

Branded Title: Simply Explained (2024)Post

Branded Title: Simply Explained (2024)

What is a branded car title? A branded title vehicle is a vehicle that has been involved in a major collision or accident or has otherwise suffered significant damage. Branded title insurance can significantly affect your rates or make it impossible for you to get comprehensive or collision insurance coverage. You may have heard the...

What is a branded car title? A branded title vehicle is a ve...

Affordable Assigned Risk Auto Insurance (2024)Post

Affordable Assigned Risk Auto Insurance (2024)

Assigned risk auto insurance is a unique type of car insurance given to drivers who would not normally qualify for insurance but are required to have insurance under state law. Keep reading to discover everything you need to know about assigned risk auto insurance, including when you need it and how to get it. How...

Assigned risk auto insurance is a unique type of car insuran...

FS-1 Document for Auto Insurance: Simply Explained (2024)Post

FS-1 Document for Auto Insurance: Simply Explained (2024)

The FS-1 is a document required for certain drivers in North Carolina. If you have allowed your car insurance coverage to lapse, then you may be required to provide an FS-1 document to prove you have car insurance. The FS-1 demonstrates proof of financial responsibility. It works in a similar way to the SR-22 document,...

The FS-1 is a document required for certain drivers in North...

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Clean Driving Record for Auto Insurance: Simply Explained (2024)

What You Should Know A clean driving record is typically one with no moving violations, accidents, or other incidents Definitions of a clean driving record may vary depending on which auto insurer you purchase coverage from and which company you apply to work for A clean driving record can save an average of 37% on rates over rates...

What You Should Know A clean driving record is typically o...

Auto Insurance Redlining: Simply Explained (2024)Post

Auto Insurance Redlining: Simply Explained (2024)

When researching car insurance, you will occasionally come across the term ‘redlining’. Auto insurance companies may be accused of redlining, for example, or a certain community might face higher insurance prices due to redlining. What is ‘redlining’ with auto insurance? Does redlining still occur today? Is redlining illegal? Today, we’re explaining everything you need to...

When researching car insurance, you will occasionally come a...

Auto Insurance Misrepresentation: Simply Explained (2024)Post

Auto Insurance Misrepresentation: Simply Explained (2024)

Car insurance misrepresentation, also known as material misrepresentation, is a type of insurance fraud that can have significant consequences for policyholders. If found material for underwriting a misrepresentation, it can lead to serious repercussions, including policy cancellations and denied claims. Understanding the misrepresentation definition of insurance is crucial to avoid these pitfalls. In this article,...

Car insurance misrepresentation, also known as material misr...

Auto Insurance Binder: Simply Explained (2024)Post

Auto Insurance Binder: Simply Explained (2024)

A car insurance binder is a form from your car insurer or insurance agent that provides temporary proof of coverage while the insurer verifies your data. Thanks to a binder, you can legally drive your vehicle with insurance coverage while the underwriting process is underway. Once the underwriting process is complete and the insurance company...

A car insurance binder is a form from your car insurer or in...

Certificate of Financial Responsibility: Simply Explained (2024)Post

Certificate of Financial Responsibility: Simply Explained (2024)

When it comes to auto insurance, proof of financial responsibility refers to the ability of a driver to pay for damages in the event of an accident the driver is found liable for. Different states have different financial responsibility law requirements. In the United States, losses from auto accidents are estimated to exceed $150 billion...

When it comes to auto insurance, proof of financial responsi...

Affordable Umbrella Auto Insurance Coverage (2024)Post

Affordable Umbrella Auto Insurance Coverage (2024)

Umbrella insurance is a kind of liability insurance policy that covers both the assets of the insured party and the future income of parties on the primary policies. It is not the same as excess insurance, which typically only applies when all the policies that it covers have been exhausted, umbrella insurance “drops down” to...

Umbrella insurance is a kind of liability insurance policy t...

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