Vocabulary
Glossary
Definitions written for college students and their parents deciding how to insure a student with or without a car. Each term links back to the guides where it matters.
- Comprehensive coverage
- Theft, vandalism, weather, fire, animal strikes, glass—the common campus claims.
- Continuous coverage
- An unbroken insurance history. Gaps are rated as a risk factor.
- Deductible
- What you pay before collision or comprehensive pays.
- Distant student discount
- A discount for a student on a family policy at school 100+ miles from home without a car, typically 10–30% of their share or re-rating as occasional driver.
- Full-time student
- Typically 12+ credit hours; required for most student discounts.
- Garaging address
- Where the car is kept overnight most of the year; sets the rating territory. Must be the campus address if the car is at school.
- Good student discount
- 5–25% for full-time students under about 25 with a 3.0 GPA or equivalent.
- Household member
- A person living at the insured address. A dependent student away at school typically still counts.
- Liability limits
- The maximum paid for injuries and damage you cause, e.g. 100/300/100 in thousands.
- Named insured
- The policy owner. Some insurers require a car's title holder to be a named insured.
- Non-owner policy
- Liability coverage for a driver without a car. Useful for independent students who borrow cars or want continuous history.
- Occasional driver
- A listed driver who does not regularly use a household vehicle—how a distant student is rated.
- Permanent address
- The address a student considers home and returns to; usually the family home while a dependent. Determines eligibility to remain on a parent's policy.
- Permissive use
- Coverage for an unlisted driver using a car with the owner's permission. The owner's policy is primary.
- Premium
- The price of a policy, per six or twelve months.
- Rating territory
- A geographic area with its own base rates. Urban campuses are often higher than suburban homes.
- State minimum
- The lowest liability coverage a state requires. Policies adjust to meet the minimum of the state where a crash occurs.
- Uninsured/underinsured motorist coverage
- Pays for your injuries when the at-fault driver has no or too little insurance.