Vocabulary
Glossary
Definitions written for drivers who have had a recent accident and want to understand and reduce its effect on their insurance. Each term links back to the guides where it matters.
- Accident forgiveness
- A feature that waives the surcharge for a first at-fault accident; earned or purchased.
- At-fault accident
- A crash for which you are assigned the majority of responsibility; typically surcharged for three to five years.
- Chargeable claim
- A claim that triggers a surcharge—usually at-fault and above the insurer's dollar threshold.
- Claim threshold
- The paid amount (often $750–$2,000) above which an at-fault claim becomes chargeable.
- Claims history report
- An industry database record of claims on you and your vehicles, usually covering seven years.
- Comparative negligence
- A state rule assigning each driver a percentage of fault; insurers typically surcharge at 50% or more.
- Coverage gap
- A period without insurance; raises future rates and may suspend registration.
- Deductible
- What you pay before collision or comprehensive pays.
- Lookback period
- How far back an insurer considers accidents—usually three or five years.
- Mid-term cancellation
- Ending a policy before expiry; limited in most states to non-payment, fraud or licence loss.
- Non-renewal
- The insurer declining to offer a new policy term; requires advance notice.
- Non-standard insurer
- An insurer that specialises in drivers with accidents, violations or lapses.
- Not-at-fault claim
- A claim where another party is responsible; usually not surcharged, though some insurers count it in frequency.
- Premium
- The price of a policy, per six or twelve months.
- Subrogation
- Your insurer recovering what it paid from the at-fault driver's insurer, including your deductible.
- Surcharge
- A rate increase applied for an accident or violation, largest in year one and tapering.
- Telematics
- App or device-based monitoring that prices on actual driving; useful for offsetting a record.