* Accident Forgiveness: If you have not had an at-fault accident in the past five years insurance companies in most states will not add a surcharge to your premium after your next at-fault accident.

* Actual Cash Value: This is what your car or vehicle is worth after subtracting how much it has depreciated in value from the original cost due to age, wear, mileage and damage. It amounts to about to what you could sell you car for today which is less than what you paid for it new.

* Agent: An insurance Agent has been authorized by an insurance company represent the companies interests.

* Aggregate Limit: The highest amount that could be paid out on an insurance claim no matter how much property damage or bodily injury that resulted from the accident.

* Amendment: A change to an insurance policy that is usually done after the effective date.

* Anti-Lock Braking System: ABS is a computer controlled braking system that prevents the wheels from locking up and skidding.

* Anti-Theft Device: These devices include motion detectors, alarms, engine starter disablers and steering column restraints. They are designed to help prevent your car or vehicle from being stolen or vandalized and most insurance companies offer a discount on your insurance premium if you install them.

* Anti-Theft Recovery System: These devices include GPS systems and transmit a signal the police can track and use to find your stolen car or vehicle. Installing them may also qualify you for a discount on your insurance premium.

* At Fault: The person who is responsible for causing an accident and is legally liable for the damages.

* Auto Insurance: A type of insurance that compensates you for losses that result from car or vehicle accidents. It typically includes coverage against liability, property damage and bodily injury.

* Benefit: This is the pay out the insurance company sends to you or to the person you named as the beneficiary on your insurance policy if you file a successful insurance claim.

* Binder: This gives you temporary proof of coverage until the insurance company sends you your regular insurance policy paperwork and usually requires a premium payment.

* Bodily Injury: Any physical injury suffered by a person as a result of being in an auto accident.

* Bodily Injury Liability: A type of insurance that provides you coverage against financial loss if you are at fault in an auto accident for causing bodily injury to somebody by paying them compensation for it. It usually also pays for defense costs against legal actions and lawsuits. The maximum limit amount that can be paid out is set when you buy your insurance policy.

* Broker: A broker is authorized to represent the customers who buy auto insurance.

* Carrier: The insurance company you buy your insurance from.

* Certificate of Financial Responsibility: This is usually an SR-22 and is a document filed by the the insurance company that proves you have met the states minimum liability limits.

* Claim: An auto insurance claim is your request to be reimbursed for a loss or damage that is covered by your car insurance.

* Claim Adjuster: A person responsible for investigating and settling a claim.

* Collision Coverage: A type of car insurance that pays for auto repair or replacement costs if your car hits another vehicle or object. It usually pays up to the actual cash value of your car.

* Continuously Insured: The length of time you have maintained insurance on your vehicle with no lapse or interruption. This helps you qualify for discount insurance premium rates.

* Declarations page: The first page of your insurance policy that lists your name, insurance company, policy number, deductibles and coverages. It includes the effective and expiration dates of the insurance policy and a description of the insured vehicles.

* Deductible: The deductible is the amount that an insured person agrees to pay toward their own losses before the insurance company pays out on a claim. The higher the deductible you choose the lower your insurance premium will be.

* Depreciation: The steady decline in you vehicles actual cash value as the result of age, mileage, wear and tear.

* Driver Training Discount: If you take a defensive driver safety training course you might qualify for a discount on your insurance premium.

* Earned Premium: The part of your insurance that has actually been paid for. If you pay for six months of coverage then in four months there will be four months earned premium.

* Effective Date: The date the insurance coverage on you vehicle actually starts when you pay for it.

* Endorsements: Also know as riders, these are changes to the original insurance policy.

* Expiration Date: The date your insurance coverage stops unless you renew the policy.

* Gap Insurance: This pays you back the difference between what you owe on your auto loan or lease and the actual cash value of your vehicle after a serious accident or total loss. It is optional but highly recommended if you owe a lot on your car.

* Garage Location: This is simply the zip code area where you park your car at your primary residence when you are not driving it.

* Indemnity: The sum to be paid out in the event of a loss that puts the insured back to where there were before with no more and no less.

* Insurance Premium: The predetermined amount you pay to the insurance company to get the insurance coverage you agreed upon.

* Insurance Quote: An no obligation offer from an insurance company for insurance coverage based on the information you give them about your vehicle and how much coverage you want.

* Lapse in Coverage: This happens if you let your car insurance expire and have no insurance for any length of time and will not help you qualify for a discount.

* Liability: The legal responsibility incurred if you cause bodily injury to another person or their property in an accident to compensate them for it.

* Liability Insurance: This pays for damages you have to pay to someone else as a result of causing them bodily injury or property damage in an accident. Most states have a minimum liability coverage amount.

* Limits: The maximum amount your insurance company will pay out to you in the event of an accident or loss.

* Medical Payments Coverage: If you have an accident this pays the medical expenses for you and your passengers no matter who was at fault.

* Motor Vehicle Report: A record of your moving violations and accidents over the years. A good MVR means lower insurance premiums.

* Multi-car discount: Most insurance companies offer a discount if you insure more than one vehicle with them.

* No-Fault Insurance: A few states allow this type of insurance where the company pays out to the insured no matter who was at fault in the accident.

* Personal Injury Protection: PIP pays for your medical expenses and lost wages in the event of an accident no matter who was at fault.

* Underinsured Motorist Coverage: If you get into an accident with someone who does not have enough insurance coverage to meet the damages you suffered this will pay for your medical expenses and property damage.

* Underwriter: An insurance company representative who reviews the insurance policy you apply for and decides if it is acceptable by the company standards.

* Uninsured Motorist Coverage: This will pay for the damages and bodily injury you suffer if you get into an accident with someone who does not have any car insurance.

* Vehicle Identification Number: VIN is the 17-digit serial number of your vehicle located on the drivers door frame or dashboard.