Auto Insurance Terminology

Posted February 23rd, 2018

Whether your vehicle is for your business or your home, your auto insurance policy is sure to be riddled with confusing jargon. Here are some basic auto insurance terms:

At Fault: The party that is found at fault is the one that is legally liable for the damages in an accident.

Bodily Injury Liability Coverage: If you are at fault, this helps pay the medical costs, loss of income, and even funeral expenses of other people involved in the accident.

Claim: Any request for payment under the terms of the policy

Collision Coverage: This coverage is what pays the damage when the vehicle collides with another car or object.

Comprehensive Coverage: If your car is damaged from anything other than a collision, the comprehensive coverage will pay the damage. If your car is stolen, vandalized, or hit with a natural disaster, you’re covered.

Deductible: The portion of a claim that you pay out of pocket

Driver Status: People can be added to your policy with one of the following driver status options:

        Rated – A person that actively drives the vehicles on the policy

        Excluded – This person is not allowed to drive the vehicles and will not be covered in an accident

        Listed – A member of your household who doesn’t frequently drive the vehicles on the policy

Premium: The price of the policy that you pay in exchange for coverage

Property Damage Liability: Helps pay the repairs or even replacement of another driver’s car


Not all drivers know about GAP auto insurance, offered through Decatur Earthmover Credit Union. Here’s how it works:

Say you get into a car accident and your car is deemed a total loss. Even worse, insurance will only pay a portion of your loan.

That's when GAP flexes its muscle.

A GAP policy covers the difference between what you owe on a car and what your insurance company will pay. At Decatur Earthmover, our members can cover their vehicle loans with a $395 GAP policy. A DECU GAP policy also includes insurance policy deductible assistance. Even better? Earthmover will give you $1000 towards your next car loan when you finance with us within 90 days.

Smart move, huh.