Plano Auto Insurance Definitions

Have you ever wondered what some of the words you find in your Plano auto insurance policy, or insurance cards mean?  The Clements Insurance Group, LLC, team of agents have conveniently defined the more important ones you will come across and should know.

Plano Auto Insurance Definitions

  • Actual Cash Value (ACV)

    The value of your property, based on the current cost to replace it minus depreciation.

  • Bodily Injury (BI)

    Physical injury to a person.

  • Deductible

    The amount the insured must pay in a loss before any payment is due from the company.

  • Depreciation

    When an item´s value is lowered because of use or wear and tear.

  • Endorsement

    When attached to a policy, this written agreement expands or limits benefits otherwise payable under the policy. Also known as a “rider.”

  • Gap Insurance

    This pays the difference or “gap” between the actual cash value of a vehicle and any unpaid amount on the loan. Some gap policies may also cover the deductible.

  • Liability Insurance

    When you cause an accident, this pays for injuries to the other party and damages to the other vehicle. Also pays for accidents caused by someone covered by your policy, including someone driving your car with your permission.

  • Liability Limits

    The maximum amount your liability policy will pay. Higher liability limits can be purchased for an additional premium.

  • Property Damage (PD)

    Physical damage to property.

If you have any questions or comments do not hesitate to reach out to us at the Clements Insurance Group Contact Us page.

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