Auto Insurance Coverage Definitions

Here are some of the most frequently used insurance terms along with their meanings:

[Let CarInsurance.com help you find affordable auto insurance now.]

• At-Fault- In a car accident, there is usually at least one driver who is deemed responsible for the accident due to negligence or accidental causes. That driver is considered at-fault.
• Deductible- A deductible is the threshold amount of money that you must pay out-of-pocket to cover damages and expenses that resulted from your car accident. Your auto insurance company should have many different deductible amounts for you to choose from. The higher your deductible, the less expensive your insurance premiums will be.
  
• MVR- An MVR is a Motor Vehicle Report. An MVR is the recorded history of your driving record. You can consider it like a credit report for driving. It helps the auto insurance company determine how much risk you pose to them.
• PIP- PIP stands for Personal Injury Protection coverage and is required coverage in many states. PIP pays for hospital bills and other medical expenses no matter who was at-fault in the accident. It may also cover some lost wages and other expenses incurred as a result of the accident.
• Renewal Date- Auto insurance policies are only valid for six to twelve months. The date that your existing policy ends and your new policy begins is the renewal date.