Vocabulary
Glossary
Definitions written for drivers who need or are considering collision and comprehensive coverage and want to compare prices. Each term links back to the guides where it matters.
- Actual cash value (ACV)
- The car's market value immediately before a loss—what collision and comprehensive pay on a total loss.
- Collision coverage
- Pays to repair or replace your car after a crash regardless of fault, minus the deductible.
- Comprehensive coverage
- Pays for non-crash losses: theft, vandalism, weather, fire, animal strikes, glass.
- Deductible
- The amount you pay before collision or comprehensive pays on a claim.
- Full coverage
- Informal term for liability plus collision and comprehensive. Not a defined policy type.
- Gap coverage
- Pays the difference between ACV and the remaining loan or lease balance after a total loss.
- Glass coverage
- A low or zero deductible for windshield and glass claims, offered separately in some states.
- Liability coverage
- Pays for injuries and property damage you cause to others; required by nearly every state.
- Loss payee
- The lender named on the policy, paid first on a physical-damage claim.
- New-car replacement
- Pays for a new vehicle of the same model instead of ACV if a recent car is totalled.
- Premium
- The price of the policy, per six or twelve months.
- Rental reimbursement
- Pays for a rental car while yours is repaired after a covered claim; an add-on.
- Total loss
- When repair cost exceeds a threshold of the car's value; the insurer pays ACV minus deductible.
- Vehicle symbol / rating group
- A model-level rating that reflects repair cost, theft and claim history; drives collision and comprehensive pricing.