NJ Auto Insurance Glossary

What auto insurance is designed to cover. Accidents may be considered either at
fault or not at fault. If you have at fault accidents on your driving record, your
rates will be higher.

A person or entity, other than the named insured, who is protected under the
named insured's auto policy. If an auto is leased, the leasing company may want
to be listed as an "additional insured" as well as a lien holder.

Devices designed to prevent theft or vandalism of a car, truck, motorcycle or
other vehicle. Some anti-theft devices can assist in the recovery of a stolen
vehicle and in most cases can reduce your auto insurance premium.

**The information, pictures, and other content in this website about particular insurance
services is only provided for informational purposes. Any decisions regarding your
insurance needs should be discussed with a licensed insurance agent.

A special type of car insurance coverage, which applies to collector cars, that could
not be otherwise insured through regular methods.

A policy that covers the damage to your car, truck, motorcycle, or other vehicle
which was not caused by an auto accident. Some examples of non-auto
accidents include the following: theft and vandalism.

The minimum amount you will have to pay before your auto insurance policy
begins to reimburse you for your loss. Typically, policies with a higher deductible
will require lower premiums for you to pay.

Courses offered by New Jersey's Department of Motor Vehicles (DMV)
or by other approved companies that teach safe automobile driving. Upon
completion of such a course, you may become eligible for lower auto
insurance rates.

A course accredited by New Jersey's Department of Motor Vehicles
(DMV), consisting of at least 30 hours of professional classroom instruction.

The date on which your auto insurance policy begins to cover you against
losses and is not necessarily the day you agree to the coverage or pay for
the coverage.

A requirement by a state regulatory entity (usually the state Motor Vehicle
Department) for an insurance company to certify on a driver's behalf that the
driver has the ability to pay future claims up to the state required limit. The
certification is done by means of a form called an SR-22.

Often required when buying or leasing a new car. A gap auto insurance policy
insures you for the difference between what you owe on your car and what
your insurance company says it's worth.

Insurance coverage to protect against claims alleging that negligence or
inappropriate action resulted in bodily injury or property damage.

Insurance companies often reward their long time customers with lower auto
insurance premiums. An insurance company may provide a discount after an
insured has been with the company for a specified amount of time.

Medical payments coverage, also called personal injury protection, or PIP,
covers the cost of injuries to you, your family, and your passengers.

Discount often given when insuring multiple vehicles under the same auto
insurance policy. You will usually save over having separate policies for each
car.

An individual identified on the auto insurance policy as an excluded driver. This
option is most often utilized for teen-aged family members, whose inclusion in
the policy would raise the premium substantially.

Insurance companies often use your occupation and the distance that you drive
to work every day to calculate risk.

The cap amount an insurance company will pay for all claims arising from a
single incident. In an auto accident, it comprises bodily injuries sustained by all
parties. When Bodily Injury auto insurance coverage is purchased in split
limits, the second limit is the "per occurrence" limit.

Example: $50,000 per person and $100,000 per occurrence

The cap amount an insurance company will pay for any one person's injuries
arising from a single incident. In an auto accident, it comprises bodily injuries
sustained by each person. When Bodily Injury auto insurance coverage is
purchased in split limits, the first limit is the "per person" limit: Example:
$50,000 per person and $100,000 per occurrence

Personal auto insurance policies are the most common type of auto insurance
sold. They include coverage for liability, medical payments,
uninsured/underinsured motorist coverage, and physical damage protection.

Coverage usually includes benefits for medical expenses, loss of income,
essential services, accidental death, funeral expenses, and survivor benefits.
This insurance coverage is currently required in less than 15 states.

Uninsured motorists bodily injury insurance coverage pays for an insured
person's bodily injuries for which an uninsured or hit-and-run motorist is
legally liable, but unable to pay. This insurance coverage must be available for
purchase in most states but is usually not required to be purchased.

Underinsured motorists bodily injury insurance coverage pays for an insured
person's bodily injuries for which a person with not enough insurance is legally
liable. This insurance coverage must be available for purchase in most states
but is usually not required to be purchased.

The Vehicle Identification Number is a 17 digit number that is unique to your
car. The VIN tells the company, the make, model, body type and year of the
insured vehicle. The Vehicle Identification Number is located in several places,
including the title to your vehicle, your vehicle registration, your insurance card,
your auto insurance policy, the dashboard of your vehicle, and the driver side
door of your vehicle.

Advancement Enterprises I, Inc.

Northern, NJ

Montclair, NJ 07042

(973) 783-1445

Fax: (866) 324-7566

Advancement Enterprises I, Inc.

1303 Brunswick Avenue

Lawrenceville, NJ 08648

Mercer County, New Jersey

(609) 403-2018

24 hr: (609) 377-0873

Fax: (866) 623-2259