Auto Insurance Terms U-Z

Glossary of defined terms

Uninsured Motorists Bodily Injury
Uninsured motorists bodily injury coverage (which must be offered in most states) pays for a covered person´s bodily injuries of which an uninsured or hit-and-run motorist is legally liable, but unable to pay.

Underinsured Motorists Bodily Injury
Underinsured motorists bodily injury coverage (which must be offered in most states) pays for a covered person´s bodily injuries of which a person with not enough insurance is legally liable.

Uninsured Motorists Property Damage
Uninsured Motorist Property Damage Liability coverage pays for property damages caused by uninsured drivers.

Unearned Premium
The portion of your premium remaining on your policy term. For example, with a six-month premium, at the end of the first month of the premium period, five-sixths of the premium is unearned by the insurance company.

Unsatisfied Judgment Fund
Some states have established laws to reimburse those injured in auto accidents that have been unable to collect from the responsible party.

This refers to the primary function or purpose in which you intend to operate your vehicle. For example, if you primarily drive your car to and from work, the usage is considered "commute; "if you´re self-employed and you primarily drive to see customers, the usage is considered "business;" if you´re retired, your usage is considered "pleasure."

Uninsured Motorists Coverage
When an accident occurs in which the at-fault driver has no auto liability insurance, uninsured motorists coverage protects the driver and passengers in the policyholder's car for both bodily injury and property damage. This insurance is mandatory in most states.

Underinsured Motorists Bodily Injury
This coverage, required in most states, covers policyholders in the event of an accident with an at-fault driver who maintains insurance to meet legal requirements, but is underinsured with respect to actual damages. This insurance lies atop the policy of the at-fault driver and provides protection usually equal to the insured's own policy.

Unearned Premium
The amount of your premium remaining on the rest of the policy term. If you pay for six months of insurance coverage, and you are two months into the premium period, than the remaining four months has not yet been earned by your insurance company.

Unsatisfied Judgment Fund
This fund exists in some states to reimburse persons injured in auto accidents when reimbursement from the responsible party is impossible.

Usage is the primary reason for using your vehicle. The three basic categories are commuting, business, and pleasure. Commuting refers to travel to and from work; business refers to use as a vehicle used to make sales calls or see clients; if usage is discretionary, it is considered pleasure.

VIN (Vehicle Identification Number)
The VIN is a 17-digit alpha-numeric code that provides specific data about your car. The data includes the vehicle´s serial number, make, model, and year. The VIN is unique to each car and appears on all insurance, financial, and state motor vehicles records concerning that vehicle.

Waiver of Collision Deductible
When you are hit by an uninsured driver or are involved in a hit-and-run accident, and you can identify the other driver or vehicle, this option pays your collision deductible when you carry collision coverage on the vehicle involved.

Whole Dollar Premium
Insurers typically round premiums off to the nearest dollar. Any amount greater than 51 cents is rounded up and less than 50 cents is rounded down.

Information from Coverage For My Car .

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