Actual cash value: If your car is so badly damaged in an accident that the insurance company considers it totaled, they will offer you the actual cash value of the car. This means they will pay you what your car was worth based on the make, model, year, mileage and condition the car was in before the accident. The amount they pay you may be less money than you would need to buy a new car of the same model.

Bad faith: If you believe that your insurance company is not treating you fairly (for example, refusing to pay a claim that they should pay or offering less than they know the claim is worth), you can sue them for bad faith. Get information on what to do if you think your insurance company is treating you unfairly.

Bankruptcy: When you file bankruptcy, you are legally declaring that you can’t repay your debts. Filing for bankruptcy is very bad for your credit report and will stay on your record for 10 years. Make sure you look at all your options first.

There are 2 types of bankruptcy: Chapter 13 and Chapter 7. Both must be filed through a court.
If you file Chapter 13, you keep all of your property and work out a payment plan to pay off your debts. You need to have a steady income to pay off your debts. If you owe for federal student loans, federal taxes, or child support, Chapter 13 bankruptcy will not protect you from repaying those debts.

If you file Chapter 7, the court sells all of your assets and property to pay your debts. This includes cars, homes, furniture, and jewelry. If you want to keep your car and sell the rest, for example, you can make a special payment plan with the court. If you owe for federal student loans, federal taxes, alimony, child support, court fines, or personal injury caused by drugs or drunk driving, Chapter 7 will not protect you from repaying those debts.

Bodily injury coverage: This coverage pays for medical and legal expenses if you cause an accident.

Cancellation: An insurance company can cancel your insurance if you do not make your payments (called "premiums") or if, for example, they find out that you lied on your application. This is different from non-renewal, which occurs at the end of your policy term and could be for reasons including excessive losses.

Claim:When you have a loss, you file a "claim." The insurance company wants to know about accidents even if you choose not file a claim because there may be lawsuits as a result. (A "claims adjuster" from the insurance company will determine how much to pay you based on damage to your car and the estimate to repair that damage).

Claims adjuster: The person from the insurance company who assesses the amount it will cost to repair your car, when you file a claim.

Collection Agency: If you’re really late paying your bills or don’t pay them at all, the company or bank you owe often uses a collection agency to get the money. A "collection account" is a bill that has been turned over to a collection agency.

Collision coverage: This coverage pays for repairs to your car after a crash, no matter who was at fault. Collision coverage usually requires a deductible. Payment for the other person's car, when you are at fault, is called "property damage coverage."

Comprehensive coverage: This coverage pays for damage to your car caused by falling objects, fire, theft, vandalism and other damages that are not caused by an accident. Comprehensive coverage usually requires a deductible.

Coverage: The amount of insurance you buy to cover a specific loss. For example, if you have medical payments insurance, you might have coverage of up to $5,000 to cover the cost of your injuries if you are in an accident.

Credit Bureaus or Credit Agencies: Credit bureaus, also called credit reporting agencies, are companies that put together credit reports and credit scores. Potential creditors, employers, and others use the reports to get a sense of your financial habits. The three major credit reporting agencies are Equifax, Experian, and TransUnion.

Credit History or Credit Record: This is another term for a credit report. See Credit Report.

Credit Limit: This is the maximum amount of money you can spend on a credit card or line of store credit. Once you reach that limit, you’re "maxed out." The credit card company won't let you use the card anymore until you pay back some of what you owe.

Credit Rating or Credit Score: Your credit rating, also called your credit score, is the number that companies use to compare your credit report to other people’s credit. It’s like a grade — the higher your score, the better your credit report. The 3 major credit bureaus have different scoring methods.

Credit Report: This is a record of your financial history. It includes information about whether you pay your bills on time, if you’ve filed for bankruptcy, and how many credit cards you have. Credit reports are put together by credit bureaus. With your written agreement, credit bureaus let potential lenders see your report. You also have the right to look at your credit report any time you want. Learn more about credit reports.

Deductible: The amount of money you agree to pay in the event of a loss before the insurance company pays. For example, if you have a $100 deductible and your car has $400 worth of damages then you have to pay $100 and the insurance company will pay the remaining $300.

Exclusive or captive agent: An insurance agent who sells insurance for only one company. Agents that sell insurance for more than one company are called "independent agents."

Finance Charges: When you’re late paying a bill or don’t pay the full amount you owe, you have to pay finance charges. These charges are interest payments that are added to your bill in addition to what you still owe. Get more information about finance charges.

High-risk insurance: The term for insurance given to drivers who may have had difficulty getting insurance because of things like their driving record, drunk driving charges, bad credit or other problems. Also known as "non-standard insurance".

Independent agent: An insurance agent who sells insurance for more than one company.

Inquiry: This is when you or a company asks to see your credit report. There are a few different kinds of inquiries.

• Companies will make inquiries when you're asking for credit. This includes applications for credit cards and loans. These inquiries show up on your credit report. A high number of inquiries can make your insurance score go down.
• Sometimes credit cards companies look at your credit reports when deciding to send you an offer. These companies usually send you offers telling you you're pre-qualified. These inquiries (not asked for by you) don't show up on your credit report. Other companies checking your credit with your permission don't see these inquiries.
• When you check your credit on your own, it doesn't show up on your credit report.

Insurance agent: The person who sells and counsels you on insurance.

Insurance Score: Your insurance score is based on your credit report. This score is different from your credit score. Insurance companies look at credit reports and give their own scores. Each insurance company has a different system. They use their scores to decide whether or not to offer you insurance and how much to charge.

Liability: Your responsibility when you are found negligent and responsible for a loss. For example, if you run a stop sign and hit another car, you are potentially liable for the damage or injury that you caused.

Loss: A crash, theft or other problem for which you have coverage. You report your loss to the insurance company by making a claim.

Lost wages: If someone is badly injured in an accident and can't work for a period of time, they can make a claim for lost wages to get the money they would have earned by working.

Medical payments coverage: This coverage pays for doctor, hospital and surgical expenses for you and your passengers after a crash (up to the limits of your policy).

No-fault state: Some states have laws that do not place liability for a crash on one party. In those states, each party pays for its own damage and injuries. Your insurance agent will discuss this with you. Find out if your state is "no-fault."

Non-renewal: Sometimes an insurance company will decide that you are too much of a risk or that you aren't financially responsible enough to be covered. They will choose not to renew your policy. (This is different from being cancelled, which is when your policy is cut off before it's up for renewal.) If your policy is not renewed, talk to your agent about options such as raising your deductible. You don't want to be without insurance! (Find out how insurable you are in the eyes of an insurance company.)

Pain and Suffering: If someone is injured in an accident, one of the things they can make a claim (or sue) for is the pain and suffering related to their accident.

Past Due: When you’re late paying a bill, it’s “past due.” Bills usually need to be past due 30 days or more before they show up on your credit report.

Personal Statement: If you think a credit bureau has made a mistake on your credit report and the credit bureau disagrees, you can add a personal statement. This statement becomes a part of your credit report and explains your side of the story.

Policy Limit: This is the amount of money an insurance company will pay for a specific insurance coverage. Your premium will be based on what limits you choose. Since any damages over your policy limit will be paid by you rather than your insurance company, it is very important to set your limits high enough to protect your financial future.

Premium:The amount of money you pay the insurance company every six months (or monthly) to cover you and your car.

Property damage coverage: This coverage pays for damage to another's property (car and items like fences) if you cause an accident.

Quote: A quote is the price estimate an insurance company gives you when ask about or apply for insurance.

SR22:A form that certain drivers must fill out, usually because of insurance or traffic related offenses such as drunken driving, receiving a serious moving violation like reckless driving, or causing an accident while uninsured. If you have to fill out an SR-22, your insurance rates will be much higher.

Statement of Dispute: If you think a credit bureau has made a mistake on your credit report and the credit bureau disagrees, you and the credit bureau can add statements. These statements become a part of your credit report and explain both sides of the story. Your statement is also called a personal statement.

Tax Lien: A tax lien, or lien, is when the government makes a claim against your home or property because you didn't pay your taxes. If you’re in debt and owe money to creditors, the government can get a court order to take your property and sell it to pay off your debts. Tax liens are very bad for your credit report and credit rating and stay on your credit report for 15 years.

Totaled: If your car is so badly damaged in an accident that repairing it would cost almost as much as the car was worth, then they will total the car and offer you only its actual cash value. Learn more about totaling and what you can do if this happens to you.

Underinsured motorist coverage: This coverage pays for bodily injury to you and your passengers if you are in an accident caused by a person who doesn't have enough insurance to cover your claim. Often sold with uninsured motorist coverage.

Uninsured motorist coverage (UNIM): This coverage pays for bodily injury coverage to you and your passengers if you are in an accident caused by a person who has no insurance. Often sold with underinsured motorist coverage. Some states also offer uninsured property coverage, as well as bodily injury. Find out what your state offers.