Here are a few common insurance terms along with their definitions:

AUTO POLICY – There are basically six different types of coverages

1. Bodily Injury Liability: For injuries the policyholder causes to someone else
2. Medical Payments or Personal Injury Protection: For treatment of injuries to the driver and passengers of the policyholder's car
3. Property Damage Liability: For damage the policyholder causes to someone else's property
4. Collision: For damage to the policyholder's car from a collision
5. Comprehensive: For damage to the policyholder's car not involving a collision with another car
6. Uninsured Motorists Coverage: For costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

BINDER – A temporary authorization of coverage issued prior to the actual insurance policy

BODILY INJURY LIABILITY COVERAGE – A portion of an auto insurance policy that covers injuries the policyholder causes to someone else

DEDUCTIBLE – The amount of loss paid by the policyholder (The bigger the deductible, the lower the monthly premium)

ENDORSEMENT – A written form attached to an insurance policy that alters the policy's coverage, terms, or conditions

EXCLUSION – A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations

INSURANCE-TO-VALUE - Insurance written in an amount approximating the value of the insured property

LIMITS – The maximum amount of insurance that can be paid for a covered loss

NAMED PERIL - Peril specifically mentioned as covered in an insurance policy

PERIL - A specific risk covered by an insurance policy, such as a fire, windstorm, flood, or theft

REPLACEMENT COST - Insurance that pays the dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy

UMBRELLA POLICY - Coverage for losses above the limit of an underlying policy

WAIVER - The surrender of a right or privilege which is known to exist.