Car Insurance Definitions & Terms
Whether you’re renewing your insurance policy or looking to expand your coverage, you’ll want to understand every part of your policy, including the insurance declarations page
To learn more about definitions of the AARP® Auto Insurance
Program from The Hartford,1
you can read through our car insurance glossary below:
Exención por accidente:
We understand every driver makes mistakes. Si los conductores incluidos en su póliza de seguro para autos tienen un buen historial de tránsito durante ocho años consecutivos con The Hartford, será elegible para la exención por accidentes.‡
Account Credit: This applies to customers who have both their auto and home insured with us. You can apply for this credit to both policies.
Act of God:
On certain policies, we help cover supernatural or unpreventable catastrophes such as a tornados, earthquakes or floods.
Actual Cash Value (ACV): This is one way to measure the value of property that is being repaired or replaced after covered losses. It’s calculated by subtracting depreciation from replacement cost.
Alternative Fuel Discount:
If you have an electric or hybrid vehicle on your auto policy, you may be eligible for a car insurance discount
Bodily Injury Liability (BI):
This coverage helps protect against financial loss and helps pay legal costs if you cause an auto accident and injure another person. The amount of coverage you receive depends on the liability limits of your policy.
Bodily Injury Split Limits: For this, you’ll have two maximum limits for one accident. The first number is the maximum coverage amount for one injured person. The second number is the maximum coverage limit for one accident, including all those injured. For example, if your limit for bodily injury is 50/100, this means it’ll cover up to $50,000 total per person in an accident, and up to $100,000 total per accident if there’s more than one injured person.
Seguro contra colisión:
This helps pay for damage to your car that results from a collision with another vehicle or object, but not an animal. Your collision policy is also subject to a deductible.
If something other than collision damages your car like a fire, theft or vandalism, this coverage can help pay for repairs. It also helps pay for damage done by an animal. Keep in mind that it’s subject to a deductible.
Comprehensive Driving Evaluation (CDE): If you’re aging, have a medical condition or haven’t driven for a block of time, it may be a good idea to take a voluntary assessment on your ability to drive.
Comprehensive Driving Evaluation Endorsement Supplementary Payments: If you’re injured while driving a car that’s in an accident, we’ll pay you to take an optional driving test. State-licensed occupational therapists give you these exams. The availability of this can vary by state.§§
Customizing Equipment Coverage Endorsement: This gives you coverage for customized equipment like special carpeting, suspension lift kits, rims, captain’s chairs and murals on an eligible pickup or van.
Defensive Driver Credit (DDC): If the primary driver successfully completes an approved defensive driver training course within the last three to five years, we’ll apply a credit to their policy. This also depends on your state’s requirements.
Disappearing Deductible: We’ll reduce your collision deductible on your auto policy over time, as long as all insured drivers maintain a clean driving record.‡
Driver Training Credit:
This is a credit we apply to an auto policy if a driver, under the age of 22, successfully finishes a voluntary driver education course that’s approved by us.
Cobertura de cristales completos:
This can help pay for repairs or replacement of damaged “safety” glass on your car without a deductible. This coverage varies by state.
This type of coverage pays the difference between your car’s actual cash value and what you still owe if it’s stolen or totaled. It’s primarily used for leased or financed cars.
This is an agreement between you and your insurance company to help restore your financial standing prior to the loss.
Insurance ID Card: When you buy coverage from us, we’ll issue you a card that you can use as proof of insurance. This lists basic information like your name, policy number, effective dates and the year of your car. It also includes your car’s make and model.
Limited Mexico Coverage: You’ll need separate liability coverage from a licensed insurance company in Mexico, if you want to drive there.
This is a less expensive insurance option that limits your ability to sue and recover costs resulting from an accident. Keep in mind it’s not available in all states.
Cobertura de gastos médicos for Auto:
With this, you’ll get coverage for you, family members and passengers if you have injuries from a car accident. It also helps cover you if you’re hit by a car as a pedestrian.
Motor Home Lay-Up Credit:
This is an available credit for customers who have a motorhome on their auto policy that they haven’t driven for one to five months. We’ll put this credit on your motorhome and Seguro para RV
New Car Replacement: If you total your new car, your policy will help pay to replace it with a new vehicle of the same make, model and equipment.§§
Passive Restraint: These are car safety features that help protect your passengers. In many cases, they activate automatically like seat belts or airbags.
Peril: With regard to insurance, this refers to the cause of a loss like fire, hail or wind.
Paid in Full Discount: This applies to customers who pay their auto policy in full, rather than in payments.
RecoverCare Essential Services Coverage: With this, we’ll reimburse you up to $2,500 for household services that you can’t complete because of an injury. This can include cleaning, cooking, snow removal, lawn maintenance and transportation. However, you’ll still need medical payments coverage.§
Rental Reimbursement/Transportation Expense:
If you can’t drive your car because of a covered loss and you need a rental car, this coverage can help pay the cost up to your rental car insurance policy limit. This is also known as rental reimbursement coverage
and is only available if you carry comprehensive and collision insurance.
Replacement Cost Coverage for New Cars: If you total your new car, we’ll pay to replace it with a new vehicle of the same make, model and equipment. There is also no deduction for depreciation.§§
Stacked vs. Non-Stacked: If your coverage is not stacked, the policy limit is the maximum available. However, if the coverage limits are stacked, then the amount available for a covered loss is equal to your limit times the number of cars on your policy.
This is a term that describes the legal right held by most insurance carriers to pursue a third party that caused a loss to their customer.
Seguro de remolque (Labor & Towing Insurance):
Whether you lock your keys in your car, need a jump start, tire change or have run out of gas, this coverage can help pay for towing costs and the services needed.
This allows you to increase the limits of your home and auto policies’ liability coverage, giving you an extra layer of security.
Vehicle Identification Number (VIN):
Your car’s VIN is its unique 17-character serial number. Generally, it’s found on the dashboard, driver's side door jamb, vehicle's registration form and/or insurance card. You can learn more by visiting the DMV
Vehicle Safety Technology Discount: If your car has adaptive headlights or a forward collision warning system, you may be eligible for a discount.
You can learn more about car insurance coverages by contacting us at 888-413-8970