Resource — Glossary
Terms you'll hearfrom us.
Insurance has its own vocabulary. Here's what the terms we actually use mean, in plain language.
A to Z
- Actual Cash Value (ACV)
- What a car was worth the instant before a loss, after depreciation — the standard basis for most everyday auto insurance.
- Agreed Value
- A coverage type where you and the carrier settle on the car's value before the policy is bound. A total loss pays that figure, without depreciation.
- Appraisal
- A professional assessment of a vehicle's condition and worth, often used to support the figure written into an agreed value policy.
- Binder
- A temporary proof of insurance issued before the formal policy documents are finalized.
- Declarations Page
- The summary page of a policy listing the vehicle, coverage limits, the agreed value, and other key terms.
- Independent Agency
- An insurance agency that places policies across multiple carriers, rather than selling only one carrier's products as a captive agent would.
- Mileage Allowance
- An annual mileage limit built into many collector-car policies, reflecting pleasure use rather than daily commuting.
- NOS (New Old Stock)
- Original manufacturer parts, never used, that have been kept in storage since their original production run.
- Numbers-Matching
- A car whose major components (engine, transmission, etc.) carry serial numbers matching the original factory records — a significant factor in valuation.
- Restomod
- A restored classic car modified with modern components — drivetrain, suspension, electronics — while retaining its original bodywork or styling.
- Total Loss
- A loss severe enough that the cost to repair the vehicle exceeds a threshold set by the carrier, resulting in the vehicle being declared a total loss and the agreed value being paid out.
- Underwriting
- The process a carrier uses to evaluate risk and decide whether, and on what terms, to insure a given vehicle and driver.
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