Vocabulary
Glossary
Definitions written for drivers with accidents, violations, a DUI, a lapse or a suspension who need insurance. Each term links back to the guides where it matters.
- Accident forgiveness
- A feature preventing a first at-fault accident from raising the rate; must be on the policy before the crash.
- At-fault accident
- A crash the insurer determines you caused. Surcharged above a payout threshold; not-at-fault accidents usually are not.
- Continuous coverage
- An unbroken insurance history; earns discounts and avoids lapse surcharges.
- Deductible
- What you pay before collision or comprehensive pays. Raising it saves more in dollars when the base premium is high.
- Financial responsibility
- The legal duty to be able to pay for damage you cause while driving, met by liability insurance. SR-22/FR-44 filings are proof of it.
- FR-44
- The higher-limit filing Florida and Virginia require after a DUI instead of an SR-22.
- High-risk driver
- An insurer's classification for a driver whose record or profile predicts above-average claims—DUI, at-fault accidents, multiple violations, lapses, inexperience. Each insurer defines it differently.
- Lapse
- A gap in coverage. Over about 30 days it is rated as a risk factor and may cost the prior-insurance discount.
- Lookback period
- How many years of record an insurer rates—three and five are common. Determines when an incident stops affecting your price.
- Major violation
- A serious offence—reckless driving, racing, 30+ over, driving on a suspended licence, DUI—surcharged heavily and often leading to nonrenewal.
- Moving violation
- A traffic offence committed while the vehicle is in motion—speeding, red lights, distracted driving. Rated by insurers; parking and equipment tickets are not.
- Non-owner policy
- Liability coverage for a driver without a car. Carries SR-22 filings and keeps coverage history continuous.
- Non-standard insurance
- The market segment specialising in high-risk drivers. Provides SR-22 filings and non-owner policies routinely; base rates higher, incident surcharges often smaller.
- Nonrenewal
- An insurer's decision not to offer a new term. Common after incidents; does not itself damage your record.
- Preferred market
- Insurers and tiers serving drivers with clean records and strong profiles, at the lowest rates and strictest underwriting.
- Premium
- The price of a policy, per six or twelve months.
- Rating tier
- A pricing group with its own base rates. Incidents can move a driver from a preferred to a standard or non-standard tier.
- SR-22
- A certificate of financial responsibility an insurer files with the state, proving liability coverage and promising to report a lapse. Required after DUI, uninsured driving, suspensions.
- Surcharge
- A percentage added to the premium for a specific incident, typically for three years.
- Telematics (usage-based insurance)
- Pricing based partly on measured driving. Lets a high-risk driver prove current behaviour before the record catches up.