Glossary

Actual cash value

The cost to replace an asset or item at its current cost, minus any depreciation.

Additional interest

A third-party, like a landlord or rent-to-own company, that has an interest in ensuring property is insured. A party listed as an "additional interest" on your renters policy gets policy notifications such as changes or cancellations, but does not have any coverage under the policy.

Arbitration

This is a way to settle claim disagreements outside of court using a mediator who has no interest in the outcome.

Backup (sewer or drain)

Provides coverage for damage caused by water which backs up through sewers or drains, including sump pumps, sump pump wells, or any type of system designed to remove surface water. (Coverage is subject to the limit selected; will be an additional amount on your bill.)

Base rate

This is the total amount a customer pays for an auto insurance policy term, excluding any discounts or rewards earned.

Behavior based

An insurance company model based on rewarding customers for smart driving.

Bodily injury liability

Pays for injuries to other people and damage to their property when you are at fault.

Business use

For auto insurance, there is a key distinction between “business” and “commercial” uses. Commercial uses require separate insurance. Generally, if the job does not depend solely on driving, then it is more likely to be a business use. A realtor driving to show a house, a photographer driving to a photoshoot, or a caretaker driving to a family’s house are examples of business uses.

Car rental car & travel expense coverage

Helps pay rental car and travel expenses when your vehicle is damaged.

Claim

A formal request for coverage or compensation, not necessarily an amount of money. For example, a claim can include defense counsel representation if there is a suit filed for damages.  The amount of money an individual believes they should be paid by an insurance company as a result of an accident, including property damage, bodily injury or both.

Claimant

Often the third party seeking coverage or compensation. The individual who makes a claim can be an insured or a claimant (third party), or both.

Collision coverage

Collision coverage will pay for repair or replacement of your vehicle if it has been damaged in a collision with another vehicle or any object.

Commercial use

Using a vehicle for work-related purposes. Commercial uses require separate insurance. Carrying paying passengers, delivering food for money, or hauling construction materials are examples of commercial uses.

Comprehensive coverage

Comprehensive coverage pays for a vehicle that's stolen or damaged by causes other than collision or upset. Some examples include damage caused by: fire, wind, hail, earthquake, theft, vandalism, or hitting animals in the road.

Contents/personal property

An individual's personal possessions that are not permanently attached to a vehicle or home.

Coverage limits

The maximum amount a policy will pay out in a claim, minus the deductible.

Credits

A dollar amount taken off a customer's bill for any number of actions: referring a friend, taking a survey, etc.

Declarations page

A document customized for the insured which is part of the insurance policy contract. It may include the named insured, address, policy period, description of the insured persons or assets, coverage limits, premiums, and other important information.

Declination

Denial by an insurance company of requested insurance coverage because applicant does not meet company eligibility guidelines. 

Deductible

The amount the insured is expected to pay before the insurance company covers any remaining costs for a covered loss, up to the policy limits, if applicable. Selecting higher deductibles generally lowers premiums.

Depreciation

Reduction in value of an asset with the passage of time, due in particular to wear and tear or becoming obsolete.

Distraction Free

One of HiRoad’s driving scores. Keep your hands off your phone so you can be ready for anything ahead. Focus on the road, cars and obstacles around you to avoid close calls and accidents.

Driving discount

The dollar amount (percentage of full potential rewards) taken off a customer's maximum bill each month as a reward for driving mindfully.

Driving Patterns

One of HiRoad’s driving scores. How much, where and when you drive can impact your risk for accidents. Sometimes you can control these amounts. Sometimes you can't. When you can drive less, do it. When you can group errands, that helps too.

Driving Summary

The in-app presentation of measured and ranked factors that combine to make up a customer’s score and monthly bill. Factors include: driving amount, driving environment, gentle cornering, gradual acceleration, safe speeds, and smooth braking.

Earthquake coverage

This optional protection provides coverage, up to your personal property coverage limit, for damage to your personal property caused by an earthquake. It may also help pay for living somewhere else while your rented home is being repaired.

Effective date

The starting date of an insurance policy or change to the policy during the term, including cancellation.

Emergency road service coverage

Helps pay for the cost of certain emergency services, like towing or jump starting your dead battery.

Endorsement 

An amendment or addition to an existing insurance contract. Endorsements can also be referred to as riders and may be used to add, delete, exclude or otherwise alter coverage.

Exclusions

The part of an insurance policy that describes losses that aren’t covered. For example, driving for ride-sharing or delivery services would be excluded from most personal auto policies since those are commercial situations.

Full Coverage

There aren’t really “full coverage” policies. Typically, this describes having some combination of comprehensive, collision, and liability coverages.

Hazard

An action or situation that increases the chance of something bad happening. Leaving your car door unlocked is a hazard, because it could lead to your car being taken to a demolition derby without your permission.

Indemnification

This is the goal of insurance—to get you back to how things were before the event that led to the claim.

Insurable interest

When an individual has a financial interest in the asset or property being insured. For example, the owner of the vehicle or personal property in their rented home.

Insuring agreement

The part of an insurance policy that specifies the general conditions under which coverage is provided under the insurance contract.

Jewelry & furs coverage

Covers loss by theft of jewelry, watches, precious and semi-precious stones, and fur or fur-trimmed garments.

Liability coverage

Pays for injuries to other people and damage to their property when you are at fault.

Loss of use

Coverage that pays for additional living expenses when a home is not livable due to a loss.

Medical payments

Helps pay for medical expenses if you or your passengers are injured in an accident. 

Mindful

Mindfulness is both an affirmation and aspirational reminder that you care about the world you live in—and make good choices accordingly.

Multi-policy discount 

A discount offered for having more than one type of policy.

Mysterious disappearance 

When property can not be found, but the cause of the loss can not be identified. Sort of like what happens to all those missing socks. This is not a covered peril in Renters, except by adding "Jewelry & Furs" coverage which adds it only for that category of items.

Named insured

The person(s) listed on the Declarations Page of a policy.

Non-renewal

An insurance company's decision to not offer an insured a renewal term for the policy. Notice is provided to the insured in advance of the expiration of the current term, so the insured has time to seek a new policy with another insurer.

Peril

 A cause of loss. Fire, lightning, collisions, a branch falling on your car, and a cat burglar breaking into your apartment, are all examples.

Personal liability 

Coverage that pays for injuries to other people and damage to their property when the insured  is at fault.

Personal property replacement cost 

The cost to replace property if it was newly purchased (without any depreciation factored in).

Physical damage 

The term for groups of insurance coverages that protect vehicles. It can include collision and comprehensive.

Quote 

An estimate of what an insurance rate could be with a potential insurance carrier. HiRoad quotes the exact price for the information provided.

Residence location

The address where a vehicle is usually parked overnight.

Rewards 

Credits earned to reduce your bill for completing optional challenges or referring a new customer to HiRoad.

Risk

A threat that can cause financial losses

Safe Speeds

One of HiRoad’s driving scores. Who enjoys being on the road around a reckless driver? Weaving in and out of traffic and driving at speeds much faster than the flow of traffic impacts the chances of harm for everyone. Be courteous behind the wheel and you'll make a positive difference.

Smooth Driving

One of HiRoad’s driving scores. Hugging corners and taking off quickly is cool on a racetrack. In traffic? Not so much. Easing on the brakes, accelerating with finesse and taking corners evenly will help decrease your chances of getting in an accident and make your trips much calmer.

Special limits of liability

In a renters policy, some types of personal property, like jewelry, gift cards and cash are subject to a max amount and limited to certain types of losses.

SR-22

Also referred to as proof of financial responsibility. When you have major violations on your driving record, such as a license suspension or DUI, the state may require you to prove you have enough insurance to cover any future potential incidents. HiRoad does not provide these.

Subrogation

An insurance company's legal right to pursue the recovery of claim payments made to the insured from a third party who caused insurance loss.

Underinsured motorists (UIM) coverage

Helps pay for injuries to you or damage to your property when the other driver is at fault and doesn't have sufficient insurance.

Underwriting

The act of evaluating the risk in insuring the people and property under an insurance policy. Involves determining whether the risk can be insured and the pricing for the risk.

Uninsured/Underinsured Motorist coverages

Helps pay for injuries to you or damage to your property when the other driver is at fault and doesn't have sufficient insurance, or any insurance at all.