Image via Wikipedia

Automobile Insurance Definitions & Glossary: O – V

Occasional Driver – is someone who doesn’t drive the vehicle regularly but only occasionally.

Occurrence – can be any event or exposure to conditions which can cause damage or injury during the period of the policy.

Passive Restraint System (PRS) – some types of safety equipment which automatically activate if you are involved in an accident – air-bags are a good example.

Payment Plans – if you can’t afford to pay for your whole insurance premium in one lump but opt to pay for it periodically throughout the year (monthly is the most common), then this is your payment plan. You will pay a little more for the privilege but it’s the only way that many people can afford to pay their car insurance premiums.

Per Occurrence Limit - the maximum amount which the insurance company will pay out for claims resulting from each individual accident.

Per Person Limit – the maximum amount which the insurance company will pay out for claims for any bodily injuries of each individual person involved in an accident.

Personal Injury Protection (PIP) – varies depending on the terms of your individual car insurance policy but is something you do need to take note of. It’s to pay for any medical treatment, loss of wages etc as the result of an accident.

Physical Damage Cover – on the other hand, pays for the damage which your car endures in the accident, it could be a collision with another vehicle or object, vandalism, theft, fire etc. This could be through either Comprehensive Cover or Collision Cover.

Policy Limit – is the maximum amount which the car insurance policy will pay out, this can be the overall payout or for individual bits of cover.

Policy Period – is the period of time that the policy is in force.

Policyholder – is the same as the named insured, it’s the name of the person on the policy.

Pre-Accident Condition – is quite self explanatory too, it’s the condition of the vehicle before an accident took place. This takes into account any damage which was not due to the accident, as well as mileage and other particulars.

Primary Use – is what you will primarily be using your vehicle for – pleasure, work, to and from work, business, taking Mom shopping, picking the kids up from school, visiting Granny,  Moms taxi . . .

Principal Driver – is whoever drives the car most of the time.

Property Damage Liability Cover – is there to pay for any damage you might cause, in your vehicle, to somebody else’s property. This is when you are at fault for the accident and can help to pay for your legal defense if necessary.

Quote - how much you will have to pay for the car insurance cover you have requested. This will depend on your application – drivers record, vehicle etc.

Re inspection - will be carried out by the adjuster either during or after the repairs have been done to your car. It’s to make sure that the work has been completed satisfactorily (is that the correct spelling, it looks wrong but the spell checker hasn’t picked it up – very strange?)  and in accordance with the estimates from the body shop.

Replacement Cost – is the cost it would take to replace the vehicle. I know you think that’s a bit obvious, but read on . . . some insurance companies will only pay out the value of the car at the time of the accident and NOT what it would cost you to replace it.  If you have replacement cost as a part of your insurance contract, it will either pay for the repairs to your vehicle or replace it with a new one.

Salvage – is anything which has been damaged but can be repaired and then sold to try and reclaim a bit of the costs. Every little helps you know!

Special Investigation Units – are the ones who investigate and fight  fraud. It sounds very serious doesn’t it, and it is too, fraud is a big problem for insurance companies and helps to hoist all of our premiums.

Total Loss – is the term used when it would cost more to repair the damaged vehicle than it would be worth after the repairs, rendering it a total loss.

Under insured – if you don’t make sure that you have enough car insurance you are under insured, and you might only receive a part of the money needed to repair or replace your car.

Vehicle Identification Number (VIN) – there’s an individual VIN number for each and every vehicle which has been manufactured in the States since way back in 1980.  It enables identification of vehicles if they have been lost or stolen. (Lost?? How on earth can you lose your car, oh yes, I remember walking the streets of an unfamiliar town [which shall remain nameless] for around 3 hours after not taking enough care in remembering where I’d left my car, but thankfully I found it in the end).

Void – is what your car insurance policy might become if you don’t keep up the payments. Car insurance policies can be “voided” for many reasons, giving false information in the first place, for example.