Waiver of Collision Deductible – this pays for all damages incurred when you an involved in an accident with an uninsured driver and they are at fault. For this though, you have to be able to identify the driver, and there must have been actual collision contact.

Warranty – this is a written guarantee from the manufacturer which guarantees the quality of any parts and the responsibility of the manufacturer to repair or replace any parts which are not up to standard.

Whole Dollar Premium – insurance premiums are generally rounded to the near dollar, so 51 cents would round up to the next dollar, 50 cents or lower would round down to the dollar below.

Vandalism – the deliberate defacing, damaging or destruction of property.

Vehicle Identification Number (VIN) – this is a unique 17 digit number which is assigned to every vehicle in the US, well, all of those since 1980 anyway.

Umbrella Insurance – insurance against loss of an umbrella – no, not really, it is to provide a high limit of extra liability cover over and above the normal limits of your auto or home insurance.

Underinsured – anyone who doesn’t have sufficient insurance coverage.

Underwriting – this is the process the insurance company goes through before deciding whether to provide insurance cover for an applicant.

Unearned Premium – is the portion of your policy which is remaining, i.e. if you have paid for 6 months insurance cover, after one month there will be 5 months of unearned premium remaining.

Unsatisfied Judgment Fund – is available in some states where it can reimburse anyone injured in a motor accident who cannot claim from the party responsible.

Usage – the purpose for which the vehicle will generally be used (i.e. private, business etc).

Term – this denotes the length of time when the policy will actually be in force.

Theft – taking someones property unlawfully without their permission.

Third Party – is someone who is not a named part of the agreement but does have an interest in the agreement.

Third Party Claim – refers to any claim on thesurance policy for injury or damage to a third party alleged to be the fault of the insured.

Tort – is private harm or wrong-doing which results in legal liability. This could be either intentional or negligent (accidental).

Tort Feasor – is someone that commits a tort.

Total Loss – when something is damaged to such an extent that it is simply not feasible to repair it. If a vehicle, for example, is damaged to badly that to try to repair it would deem it unsafe, then it is described as a total loss.

Transportation Expenses – this is optional on some policies to cover your transportation expenses if your vehicle is stolen.

Safe Driver Plan – this system gives ratings based on previous accidents , violations etc, so if you have a history of safe driving your premiums might be less.

Salvage – is damaged property which could be salvaged and sold on to recoup a portion of the losses incurred.

Select Repair Shop – these are body repair workshops which have been pre-approved by the insurance company to carry out repairs. The owner of the vehicle should always have the last choice of where the repairs are carried out.

Self Insured Retention – the amount which the policy holder pays out of their own pocket before the insurance company pays for the remainder.

SR-22 – this is a certificate which is mandated by the state and verifies that any individual is maintained auto insurance cover.

Subrogation – when your car is damaged because of the negligence of another driver, your insurance company will claim payment from their insurance company to cover your claim.

Supplemental Estimate – this is additional money needed to cover costs which were not included in the original damage estimate.

Rate – this is often thought to be synonymous with premium, but is actually the base rate units which determine what the premium will be.

Rating Plan – the rules which go to determine the final cost of your insurance premium, and can depend on many factors, for example a clean driving record or insuring multiple vehicles.

Rebate – is a reduction in the premium, if you’ve changed to a cheaper or older model of vehicle, for example.

Reinspection – is when the work is re-evaluated to make sure that it was carried out up to the necessary standards etc.

Release – this legally binding contract is issued to state that all obligations have been fulfilled and completed with respect to a particular accident or other such occurrence.

Renewal – keeps a policy ongoing and active.

Renewal Date – pretty straightforward really, the date when one policy is finished and the next one starts.

Rental Reimbursement – this optional extra covers the cost of renting a vehicle whilst yours is being repaired, if necessary.

Replacement Cost - again self explanatory, the cost of replacing or repairing the insured item.

Resident Adjuster – is an adjuster who deals with claims in remote areas (because he’s resident there!)

Rider - when used in motorcycle insurance, this refers to the person who will “drive” the motorcycle.

Risk – is the chance of something happening!

Quote – the premium you will have to pay for insurance cover which is estimated due to the vehicle, your age, your driving record etc.

Passive Restraint System – is any type of safety system which is automatically activated when there is an accident (ie passenger air bags).

Payment Plans – is an alternative to paying for all of your insurance policy upfront. You might be able to pay in monthly instalments, although this will incur extra charges.

Payment Recovery – this is basically when a vehicle is damaged due to the negligence of another driver, your insurance company will pay you the cost of damages and seek to recover these costs from the other party – also known as subrogation.

Payment Recovery Adjuster - has the job of claiming any payments from the other parties insurance.

Per Occurrence Limit – this is the maximum amount which the insurance company will pay out for each separate accident, for example, if you take out separate insurance to cover bodily injuries in case of accident, your total limit may be $300,000, split into $100,000 per occurrence.

Personal Auto Policy - is the most common auto policy sold today. Sometimes abbreviated to”PAP” it is a simple policy which is designed to cover everything, from public liability to personal injury. A “one cap fits all” type of policy, which is still, however, tailor-made for each policyholder.

Personal Injury Protection – is designed to cover all expenses related to an injury, medical expenses, loss of wages etc, but is not available in all states and is dependent on your individual insurance contract.

Personal Property – is anything which is yours basically, except real estate and land. So that’s vehicles, clothes, jewelry, furniture etc.

Physical Damage – is basically the damage that befalls your vehicle, for example, as a result of a collision or other accident, fire, vandalism etc.

Physical Damage Cover – pays for the above damage.

Policy – the written contract between yourself and the insurance company (including all extra bits of paper).

Policy Change – refers to any changes to the policy whilst it is in force.

Policyholder – the person named on the declarations page.

Policy Lapse – when a policy is terminated, cancelled or made void – for non payment of premiums for example.

Policy Limit – is the maximum amount of dosh that the insurance company will dish out for that particular policy.

Policy Period – the period of time when the policy is in effect, generally for one year or maybe just six months.

Pre-Accident Condition - is simply the condition of the vehicle before the accident took place.

Preferred Risk – is a risk which is preferred (i.e. better) than the risk which the policy was originally calculated on.

Premium – the amount of money the insured person pays the insurance policy for the cover, for a pre-determined length of time.

Primary Insurance – is an insurance policy which must be maintained, a kind of “umbrella policy” which acts as the first level of insurance for many normal losses.

Primary Use – details what your vehicle is primarily used for – pleasure, business etc.

Principal Driver – is the person who drives the car most of the time.

Pro Rata Cancellation – if the policy is cancelled before it reaches full term, a portion of the premium may be refunded to the insured, pro rata to the amount of time left on the policy.

Proof of Loss – is a statement you must make with relation to any claim.

Property Damage Liability Coverage – subject to the specific terms of your policy, this can cover you against any claims by a third party for damage caused in an accident which was your fault.

Proximate Cause – is either an omission or an act which sets off an unbroken sequence of events and causes damage or injury to someone else of their property.

Occasional Driver – one who is not the primary driver of the vehicle, but is insured to drive it occasionally.

Occurrence – can be either an event, or exposure to unexpected conditions which causes either injury or damage during the course of the insurance policy.

Original Equipment Manufacturer Parts – these are the auto parts which are supplied and manufactured by the original manufacturer of the car.

Named Insured – can include any person or organization which is covered by the insurance policy, and not necessarily only the name on the policy.

Named Non-Owner Policy – this policy covers anyone who regularly drives a car which is not owned by them – for example a car owned by your employer.

Negligence – is basically the failure to exercise a reasonable amount of care – ie be negligent in your behavior.

No-fault Insurance – may sometimes pay accident related expenses (medical bills, loss of wages etc) even if the accident was your fault. Of course, this depends on your individual insurance policy and isn’t an option in all states.

No-Loss Form – a signed statement informing the insurance company that there haven’t been losses since a specific date.

Non-Renewal – pretty self explanatory this one, when one simply decides not to renew their insurance policy.