Auto Insurance Glossary

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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 PIP in Auto Insurance?

We know that understanding auto insurance when you’re deciding what coverages to buy can be complicated. And when it comes to personal injury protection (PIP) insurance, you probably have questions. What is PIP coverage? How much PIP coverage should I get? Where can you buy it, and how much does it cost? Read this article...

We know that understanding auto insurance when you’re deci...

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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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What Is a Car Insurance Deductible? How Much Should It Be?

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 Policy (What It Is + How It Works)

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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Guaranteed Renewable Auto Insurance (What It Is & How To Get It)

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 your...

Key Takeaways: A guaranteed renewable automobile insurance...

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Commercial Lines Insurance

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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What is an 80/20 Auto Insurance Settlement?

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. An 80/20 Auto Insurance...

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

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What Is a Branded Title? Does It Affect Insurance?

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...

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What is Assigned Risk Auto Insurance?

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...

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What is a FS-1 document for auto insurance?

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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What is a clean driving record?

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...

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What is ‘Redlining’ with Auto Insurance?

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...

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What is Auto Insurance Misrepresentation?

Car insurance misrepresentation, also known as material misrepresentation, is a type of insurance fraud. Have you been accused of car insurance misrepresentation? Today, we’re explaining everything you need to know about material misrepresentation. What is Car Insurance Misrepresentation? When you apply for car insurance, your insurance company will ask you a number of questions. If...

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

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What is an auto insurance binder?

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...

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Proof of Financial Responsibility

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...

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Umbrella Policy

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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Preferred Auto Insurance Policy

In insurance company parlance, a preferred risk auto insurance policy is a policy that is offered at preferential terms for drivers who have an outstanding history of previous driving. Preferred auto insurance is for those people who are able to show they abide by the rules of the road and have a clean record (no...

In insurance company parlance, a preferred risk auto insuran...

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Indemnity

In general terms indemnity is compensation paid by one party to another party in respect of a particular loss sustained by the receiving party. The indemnitor (the party who pays the compensation) does not have to be responsible for the loss of the other party though they may be. There are many different forms that...

In general terms indemnity is compensation paid by one party...

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