Glossary
Coverage terms, defined plainly
The words used in auto policies, explained so you can recognize them on your own documents.
Informational purposes only. Limitwise Guides provides general informational content only. It is not an insurance company, carrier, agent, broker, or marketplace, and its content does not constitute insurance advice.
- Coverage limit
- The maximum amount a policy will pay for a covered loss. Auto policies often show limits per person, per accident, and for property damage.
- Split limits
- Limits written as three numbers, such as 50/100/25, meaning per person bodily injury, per accident bodily injury, and property damage, in thousands of dollars.
- Combined single limit
- One total amount that applies to bodily injury and property damage together for a single accident.
- Deductible
- The portion of a covered physical damage claim you pay before the policy pays. Common on collision and comprehensive coverage.
- Liability coverage
- Coverage for injuries or damage you are legally responsible for causing to other people or their property.
- Exclusion
- A situation, item, or use that the policy specifically does not cover. Exclusions are listed in the policy form, not usually on the declarations page.
- Endorsement
- A written change that adds, removes, or modifies coverage on an existing policy.
- Declarations page
- The summary page listing the named insured, covered vehicles, coverages, limits, deductibles, and policy period.
- Policy condition
- A requirement you and the insurer agree to follow, such as prompt notice of a loss or cooperation during a claim.
- Named insured
- The person or people listed on the declarations page who hold the policy.
- Uninsured motorist coverage
- Coverage that may apply when a driver without insurance causes injury to you or your passengers.
- Policy period
- The dates during which the policy is in force, shown on the declarations page.