A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Comprehensive CoverageAuto insurance that pays for damage to your car from non-collision events like theft, fire, hail, or falling objects.
- Auto InsuranceCoverage for your vehicle that can pay for accidents, theft, and damage you cause to others while driving.
- DeductibleThe amount you pay out of pocket for covered costs before your insurance starts chipping in.
- Liability CoverageInsurance that pays for injuries or property damage you cause to others and helps cover legal costs.
- Actual Cash ValueA claim payout method that reimburses what an item is worth today, after subtracting for age and wear.
- PremiumThe regular payment you make to keep an insurance policy active, usually billed monthly, quarterly, or yearly.
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Plain-English education — not personalized legal, tax, or investment advice.