This glossary describes most of the campervan insurance coverages available, and other auto insurance terms used.
Some types of insurance coverage are legally required, some may have government or state mandated minimum coverage limits, and some will be optional.
You will need to check the details of a specific insurance policy to find out exactly what (or who) is covered and under what circumstances. All insurance coverages are subject to the terms and conditions of your own specific policy.
Actual Cash Value
The actual cash value is defined as the fair market value of property, based on the replacement cost minus depreciation.
Assigned Risk
An assigned risk is a driver or vehicle owner who cannot qualify for insurance in the regular market, and must instead get coverage through a state assigned risk plan.
At-Fault
The at-fault party is legally liable for the damages in an accident.
Bodily Injury
Insurance coverage in case you injure someone else (your passengers, other drivers or pedestrians) with the insured vehicle.
Car Rental
Some insurance policies may cover car rental or the cost of using public transport if your vehicle is stolen or undriveable.
CFR, Certificate of Financial Responsibility
This is a certificate mandated by the state as proof of insurance.
CLUE Report
This is a report of your insurance claim history, provided by the Comprehensive Loss Underwriting Exchange.
Collision
Collision coverage pays toward the cost of fixing or replacing your vehicle if it is damaged in a collision with another car or other object. Your insurance cover will set an amount, called the excess or deductible, which you have to pay before the collision coverage pays the rest. The collision coverage will then pay for the cheapest option available, either repairing the vehicle or replacing it. Depending on your policy, it may be replaced with its new replacement cost, or with its actual cash value. Some policies offer collision cover regardless of who is at fault.
Comprehensive
Comprehensive coverage does not include wear and tear, mechanical problems or engine failure. It covers damage to your vehicle caused by fire, theft, accidents or vandalism.
Deductible / Excess
The deductible (or excess) is the amount that you have to pay first in the event of an insurance claim, before insurance pays the rest of the expenses. A higher deductible results in a lower premium.
Depreciation
Depreciation is the reduction in value of property due to wear and tear over time.
Estimate
An estimate is an assessment of the cost to repair a damaged vehicle or other property.
Exclusions
Exclusions are limits specified in your insurance policy that restrict or exclude coverage in certian circumstances.
First Party Claims
First party claims are made for loss damage or injury to the insured.
Insurable Interest
When a person would suffer economic loss as a result of bodily injury or property damage, that is an insurable interest.
Insurance
“Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.”
– Geico
Insurance Fraud
Insurance fraud is falsely stating or exaggerating the facts of an accident to the insurance company to obtain extra payment.
Insurance ID Card
An insurance ID card contains information about your insurance policy, and you may be required to keep it in your vehicle.
Insurance Score
An individual’s insurance score may be partly based on their credit history, and is sometimes used in underwriting.
Liability Investigation
Investigation to determine the cause of an accident.
Limits of Liability
The maximum specified amount that the insurance company will pay.
Loss of Use
Compensation for financial losses suffered by a third party due to being unable to use property that was damaged in the accident.
Material Damage
All property damage covered by the policy is material damage.
Medical Payments
Coverage of medical expenses incurred in an accident. Some policies may even cover members of your household if they are injured in a traffic accident as pedestrians.
Motor Vehicle Report (MVR)
A motor vehicle report is provided by the agency that issues your driving licence. It lists your previous accidents and traffic violations, and is used to verify the information you provide
Negligence
Negligence is failure to exercise reasonable care.
No-Fault Insurance
No Fault insurance is designed to pay your expenses incurred in an accident, whether or not you are at fault.
Personal Injury Protection
Personal injury protection may be available to cover you for medical expenses and lost earnings, whether or not you are at fault for the accident.
Policy
The policy is a contract between the insured driver and the insurance company.
Premium
The premium is the price of the insurance policy.
Property Damage Liability
Coverage for damage to other people’s property caused by you or your vehicle.
Quote
A quote is a statement of the insurance premium that would be charged, based on specific information provided by the driver.
Reinspection
Reinspection is carried out by an adjuster after a vehicle has been repaired to guarantee the accuracy of estimates and completion of the required work.
Release
A release is a legally binding contract which states that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.
Salvage
Salvage is damaged property which is taken over by an insurance company after payment of a claim.
SR-22
See CFR, Certificate of Financial Responsibility
Subrogation
Subrogation is the process the insurance company follows when seeking recovery of payment from the at-fault party.
Theft
Theft is defined as unlawfully and permanently taking another person’s property.
Third Party Claim
A third party claim is a claim for bodily injury or property damage to a third party, alleged to have been caused by the insured driver.
3rd Party Fire and Theft
This type of insurance, common in the UK, includes liability coverage for damage caused to other people’s cars or property if you are at fault in a traffic accident, plus compensation for fire damage or theft of your own vehicle.
Total Loss
A total loss occurs when damage to a vehicle or property is more expensive to repair than to replace with its actual cash value, or when government regulations require it to be written off.
Towing and Labor Coverage
Provides insurance cover if your vehicle needs to be towed or requires roadside assistance.
Umbrella Coverage
Umbrella coverage increases the limits of your liability coverage, and also provides coverage for situations that may be excluded by other liability policies.
Underinsured Motorist
The person at fault in an accident is defined as underinsured if their liability coverage limits are less than your underinsured motorist coverage limits. With some policies, if you are awarded damages, the person at fault’s liability coverage will pay up to their limits, and then your underinsured motorist coverage will pay remaining damages until it reaches its specified limit.
Underwriting
Underwriting is the process an insurer follows in deciding whether or not to provide coverage for an applicant.
Uninsured Collision
If you do not have Collision insurance and your vehicle is hit by an uninsured driver, uninsured collision coverage pays for damage repairs or the actual cash value of your car, whichever is lower, up to a maximum limit specified by your policy.
Uninsured Motorist
This coverage is for costs incurred in an accident caused by an uninsured driver or in some states also a hit and run driver. Some of the costs that might be covered include damages for bodily injury, pain and suffering, lost earnings and medical expenses, within limits specified by your policy.
Vandalism
Vandalism is destruction or defacement of someone else’s property.
Vehicle Identification Number (VIN)
These 17-digit identification numbers have been assigned to every vehicle manufactured in the United States since 1980, and are visible on the dashboard.