Common Auto Insurance Terms

Your Source for Auto Insurance Information in Charleston, SC

The agents at C2G Capital Management LLC strive to provide comprehensive insurance services for each and every one of their clients. We are your one-stop shop in Charleston, SC. When you meet with us for an auto insurance consultation, we want you to leave without any unanswered questions or lingering confusion. Below we've included a glossary of some common auto insurance terminology to help you improve your knowledge of the industry and make informed decisions about policies, claims, and more.

Feel free to contact our office with any further questions or concerns.
claims agent inspecting vehicle after auto accident

Common Auto Insurance Terms

Collision - Pays to repair damage to your car regardless of who caused an accident, up to the vehicle's actual cash value, minus your deductible.

Comprehensive - Pays for damage to or loss of your vehicles from causes outside of accidents, including vandalism, fire, flood, hail, and theft.

Depreciation - The lowering of a vehicle's value over time due to use or wear and tear.

Gap Insurance - Pays any difference between a vehicle's actual cash value and the remaining amount to be paid on the loan.

Liability - Pays for injuries and damages to the other party and their vehicle in an accident caused by you or another party covered by your policy.

Liability Limits - The total amount a liability policy will pay out. Minimum limits are at least $25,000 per injured person, up to $50,000 per accident, and $25,000 for property damage. Commonly referred to as "25/50/25" coverage.

Medical Payments & Personal Injury Protection (PIP) - Pay medical and funeral expenses up to a point for you, a family member, or a passenger in your vehicle when injured or killed in an accident. PIP can also pay lost-income benefits.

Named Driver Exclusion - A policy endorsement that allows for a specifically named driver to not be covered for accidents.

Named Driver Policy - A policy where members of the insured's household must be specifically mentioned by name on the policy to receive coverage.

Non-Owners Policy - Liability, uninsured motorist, and medical payments coverage for a named insured that does not own a vehicle.

Rental Reimbursement - Pays a set daily amount to rent a car when your vehicle is being repaired of damage caused by an accident covered by your policy.

Surcharge - Additional charge to your premium if you have at-fault accidents.

Towing & Labor - Pays for a towing fee when your vehicle can´t be driven, as well as labor rates when your vehicle is broken down and needs service on the road.

Uninsured/Underinsured Motorist (UM/UIM) - Pays for injuries and damage to you and your vehicle from a hit-and-run or a driver without liability coverage. Also pays the difference when the other driver's policy does cover the total cost of medical and auto repair bills.
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