You’ll see this term a lot in auto insurance policies or if you ever have to file an auto insurance claim. That’s because most auto insurance coverage reimburses you only for the actual cash value of your car. Your car’s actual cash value is calculated by determining its original value, minus the amount your car has depreciated since you bought it. [..]

Agents and brokers both sell and manage insurance for their customers. Agents are the authorized representatives of an insurance company or companies, while brokers are the authorized representatives of people looking for insurance.

A benefit is the amount paid by an auto insurance company to you or your beneficiary when you file an auto insurance claim.

This classification means that you mainly use your car for business purposes (such as sales, service, and delivery calls) or work-related errands (like trips to the bank or post office), and other work-related driving. Commuting to and from work is not considered business use.

Collision coverage helps pay for auto repair or replacement costs if your car hits another vehicle/object or if your car rolls over. The maximum amount paid for repair or replacement is the car’s actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

If you primarily use your car for commuting, this means that you mainly use the car to drive it to and from work or school.

The length of time you’ve been continuously insured is the number of years you have been covered by one or more insurance companies without a lapse in your auto insurance coverage.

The declarations page of your insurance policy summarizes the factual information essential to your insurance coverage: the policyholder’s name and address, a description of the insured vehicles/property, the insurance premium, as well as the coverages, limits, and deductibles.

Depreciation is the decline in an object’s value due to age, wear and tear, or obsolescence.

This optional auto insurance coverage pays a fixed amount toward vehicle towing if your car breaks down or if your car gets disabled in an accident.