You may qualify for this additional coverage if you have five years of accident-free driving.
You might also see it defined technically as replacement cost less depreciation.
ACV doesnt replace your property, but reimburses you for the items value at the time of loss.
Amendment
A change to the basic policy contract.
An amendmentaltersthe policy, not to be confused with an endorsement, whichaddsto it.
Anti-theft unit
A unit that deters auto theft.
This is useful to know because these devices may entitle you to a discount on your insurance premiums.
Unfortunately, these plans cost more than regular car insurance.
Assured
Someone who has an insurance policy.
Means the same as an insured or policyholder.
Collision coverage
This pays for damages to your vehicle, no matter who is at fault.
For a super old used car, however, it might not be a necessity.
Think hailstorms, fire, reckless deer, or a reckless deer setting your car aflame during a hailstorm.
This allows insurers pay insurance claims accordingly.
The higher your deductible, the lower your monthly payments.
Declarations page
This is a summary of your coverage.
Full coverage
Dont get your hopes upfull coverage isnt as whole and complete as it sounds.
If youre leasing or making payments on a car, then gap insurance is worth considering.
For anyone who fully owns their ride, gap insurance is unnecessary.
There are two kinds of liability insurance: bodily injury liability and property damage liability.
This is the minimum amount of insurance you need.
Material damage
All property-related damage losses covered by the policy.
No-fault insurance
Assigning blame is the worst part of the insurance game.
It does not cover property damage.
If you need one of these, youll be notified by your states Motor Vehicle Department.
Total loss
When your vehicle cannot reasonably be repaired.
Of course, the list above skims the surface of the complicated world of auto insurance.
For more terms, use the search tool onGEICOs glossary here.
