Insurance Glossary

Usage-Based Insurance

Auto

Definition

Auto insurance pricing based on actual driving behavior monitored through telematics devices or smartphone apps, rewarding safe driving with lower premiums.

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Related Terms

Telematics

Technology that monitors driving behavior such as speed, braking, mileage, and time of day to determine auto insurance premiums based on actual risk.

Accident Insurance

Insurance coverage for unforeseen bodily injury resulting from an accident.

Collision Coverage

Insurance coverage that pays for damage to your vehicle resulting from a collision with another vehicle or object.

Comprehensive Coverage

Insurance coverage for damage to your vehicle from causes other than collision, such as theft, vandalism, fire, weather events, or hitting an animal.

Term Life Insurance

Life insurance coverage for a specified period of time, providing a death benefit if the insured dies during the term.

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