Insurance Definitions

These definitions provide a brief description of the coverages we offer and some of the terms and phrases used in connection with auto insurance.  This is not an insurance contract.  Other terms, conditions, and exclusions apply.  Please read the Progressive policy for full details about the coverages.  These definitions do not alter or modify the terms of any insurance contract.  If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A device which disables the vehicle by making the fuel, ignition or starting system inoperative. A separate manual step is required to engage the device.

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ILLINOIS ONLY:
This discount applies to vehicles with a window identification system with etched VIN on all windows of the vehicle other than small vent windows and on or near the front or rear bumpers OR the discount can also apply to vehicles with one or more of the following qualifying category one devices:

1. An ignition or starter cut-off switch (sometimes referred to as a "kill switch"), that is manually activated by a key or hidden switch within the car, which will disable the ignition;
2. A manually activated alarm system with a door/hood/trunk entry alarm located in the engine compartment with a hood, provided the vehicle is equipped with either a hood lock and latch mechanism or an inside hood latch control, if the system has also a motion detector with an alarm that sounds up to 10 minutes then resets.

The discount is applied to comprehensive coverage.

ALL OTHER STATES:
This discount applies to a type of theft device that is set when a vehicle operator has to manually engage and/or disengage the alarm themselves. "The Club" would be considered such a device. VIN window etching is included. This discount applies to comprehensive coverage.

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Another person or company who may be liable for an accident involving an insured or an insured vehicle and who has been named as an Additional Interest Insured under the policy.

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Assures coverage for custom parts or equipment. You must carry both comprehensive and collision coverage. Enter or select the value of you custom parts or equipment. Sound recording or sound reproduction equipment is already covered if the equipment is permanently installed in your vehicle (see policy contract for details). If the total value of your custom parts and equipment exceeds $5,000, please call TOLL FREE 1-877-PROG-COM in order to get your rate.

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The vehicle must be equipped with a driver side and/or passenger side airbag.

Proof is required if the discount is not automatically generated by the VIN:

• Window sticker, OR
• Buyers order, OR
• Photo inspection, OR
• Statement on company letterhead from manufacturer, authorized mechanic, repair or body shop.

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This discount applies to vehicles that are equipped with anti-lock brakes.

Proof is required if the discount is not automatically detected from the VIN:

• Window sticker, OR
• Buyers order, OR
• Photo inspection, OR
• A statement on company letterhead from manufacturer, authorized mechanic, repair or body shop.

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Common Exclusions: No coverage for damages or loss (1) to a vehicle while being used to carry persons or property for compensation or a fee; (2) resulting from intention acts, racing, or preparing for a race or stunting activity; (3) customs parts or equipment, including electronic equipment, in excess of the value declared in the application; or (4) to tapes, compact discs, other media or their carrying cases.

MOTORCYCLE:
Pays for loss or damage to your covered vehicle caused by any event other than collision. This includes damages due to events such as fire, theft, windstorm, flood, and vandalism. 

Common Exclusions: No coverage for damages or loss (1) to a vehicle while being used to carry persons or property for compensation or a fee (except when used for charitable events); (2) resulting from intentional acts, racing, or preparing for a race or stunting activity; or (3) to tapes, compact discs, other media or their carrying cases.

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Insurance coverage was in effect from an insurer or more than one insurer at all times, without a break or lapse in coverage for any reason.

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Custom Parts or Equipment coverage provides up to $1,000 of coverage for certain parts and equipment that were not original manufacturer installed. If you buy collision or comprehensive coverage, or both, $1,000 of Custom Parts or Equipment coverage is automatically provided. If you need more coverage, up to $4,000 additional Custom Parts or Equipment coverage may be purchased.

For example, if $1050 is the desired coverage amount, you should subtract the $1000 already included with the Comprehensive and Collision coverages to calculate the amount of additional Custom Parts and Equipment coverage needed. For this example, you would enter $50. If the Custom Parts and Equipment value you are entering is more than $4,000, the vehicle must be rated as Stated Amount. To do this call Progressive at TOLL FREE 1-877-PROG-COM.

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The vehicle must be equipped with daytime running lights.
Proof is required if the discount is not automatically generated by the VIN:

• Bill of Sale, OR
• Vehicle Window Sticker,OR
• Letter from Dealership, OR
• Photo Inspection.

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The report from your insurance company listing:

• the types of coverage you have elected;
• the limit for each coverage;
• the cost for each coverage;
• the specified vehicles covered by the policy;
• the types of coverage for each vehicle covered by the policy; and
• other information applicable to the policy.

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The amount of each loss you agree to pay. Generally, choosing a higher deductible will lower your premium.

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To be eligible for the Distant Student Discount, the driver must meet the following criteria.

1. The student may not posses a vehicle while away at school.
2. The student's relationship to the named insured must be 'child'.
3. The student must reside more than 100 miles from home.
4. The student must be single, and under 23 years old.
5. The student must be a rated/licensed driver( this includes operator's with a driver licensed type of 'Permit'. 
    This does not include operator's with a driver status of 'Non-Rated').

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A voluntary refresher course available for drivers age fifty-five (55) and older to enhance their driving skills. Participants are eligible for a discount if they can provide a certificate to Progressive as proof of completion. The course must have been completed within three (3) years of the date the policy is to begin.

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Provides information concerning whether the driver has been rated or listed on the policy.

A rated driver is listed on a policy and used for rating purposes. 

An excluded driver is listed on a policy, but does not affect the rate. Generally, no coverage is provided for an accident which occurs while an excluded driver is operating any vehicle. Please refer to your policy for more specific information.

A list only driver is listed on a policy but not rated on.

A need-signature driver is being used for rating purposes pending the return of a signed exclusion form.

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A document required by the court for persons convicted of certain traffic violations that demonstrates proof of financial responsibility.

FLORIDA & VIRGINIA ONLY:
SR22 and FR44 filings are state-required documents that show proof of financial responsibility. Drivers with a DUI conviction may be required to obtain an FR44 to prove that he or she is carrying the state's minimum liability coverage limits. Check with your state's motor vehicle office for more information.

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A rated driver is listed on a policy to determine policy premium.

An excluded driver is listed on a policy, but does not affect the premium. Generally, no coverage is provided for an accident which occurs while an excluded driver is operating any vehicle. Please refer to your policy for more specific information.

A list only driver is listed on a policy but not used to determine policy premium.

A need-signature driver will affect the policy premium until an exclusion form is signed and returned.

A Non-rated driver is considered an insured person under the policy. Their driver status is automatically changed from "rated" to "non-rated" when a driver meets the following criteria:

• Driver license status is permit
• Less than 19 years of age
• Relationship to the named insured is child
• Marital status is single

The driver status will be changed to "rated" when the driver no longer meets the above criteria.

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The total number of years of experience that a driver has been licensed to drive in any jurisdiction (includes suspension years). Proof of international driving experience may be shown using an English version of a motor vehicle report or letter of experience from a prior insurer.

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A document required by the court for persons convicted of certain traffic violations that demonstrates proof of financial responsibility.

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The ZIP code where your vehicle is parked when not in use and usually corresponds to your primary residence.

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Layaway 3 month --12 month policy term where all coverage is suspended from December 1st to March 1st of the policy term. (Exception for policies carrying comprehensive coverage: Comprehensive coverage is continuous throughout the 12 month term.)

Layaway 5 month --12 month policy term where all coverage is suspended from November 1st to April 1st of the policy. (Exception for policies carrying comprehensive coverage: Comprehensive coverage is continuous throughout the 12 month term.)

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Insurance for money the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person and covered by the policy

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Organization or person, such as a bank, financial institution or lender, that loaned you money to purchase your vehicle. They hold the title to the vehicle until the loan is paid. This gives them an insurable interest in the vehicle.

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The most we will pay for a specific insurance coverage. You may choose the limit which meets your needs. Most states have laws that specify the minimum limits you must purchase.

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Loan/Lease Payoff Protection

This coverage protects you if your vehicle is a total loss. This coverage pays the amount owed on the vehicle up to 25% over the actual cash value (except past due amounts and other purchased coverage, i.e. credit life, accidental life, warranty/repair.) This coverage has no deductible.  This coverage is typically sold to insureds who have a new car with a new car loan, or a newly leased vehicle.

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Medical Payment coverage pays certain medical and funeral expenses resulting from a motor vehicle accident. This coverage protects anyone occupying your vehicle. It also covers you and relatives while in other vehicles or if struck as a pedestrian. These benefits are payable without regard to fault. This coverage may not be available in states that require Personal Injury Protection Benefits. Principal Exclusions are similar to those for Bodily Injury Liability Coverage (see above).

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The first person in whose name the insurance policy is issued.

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A current or future model year vehicle. A vehicle that has not been previously registered to an individual would be considered new.

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The person who is not the primary or principal driver of the vehicle.

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ILLINOIS:
This discount applies to vehicles with a category one device in conjunction with a window identification system OR t
the discount can also apply to vehicles with one or more of the following qualifying category two devices:

1. An automatically activated vehicle alarm system installed in the engine compartment which includes: a motion detection device which cannot be disarmed, which sounds for up to 10 minutes and resets. However, if it has a lifting/shaker switch, the discount is still available if the lifting/shaker alarm can be separately disarmed; a door/hood/trunk entry alarm; a hood equipped with either a lock and latch mechanism or an inside latch control; a maximum delay to disarm system after re-entry of 20 seconds; and either a redundant starting means or an internal hood lock;
2. A driver activated alarm system, which: activates the horn or flashes headlights for a minimum of 5 minutes upon removing the key without first setting the alarm, is triggered by entry of doors, hood or trunk, is installed in the engine compartment of a vehicle with a hood equipped with either a hood lock and latch mechanism or an inside hood latch control; if the system has a motion detector, has an alarm that will sound for up to 10 minutes, then resets; or
3. A high security ignition replacement lock (a metal lock and steering wheel housing which cannot be removed using a conventional slide hammer or lock puller equipment).

NEW MEXICO:
Vehicle must have comp and collision and be equipped with a passive disabling device and be equipped with a hood lock that can be released only from the inside. Discount applies to comprehensive coverage only.

Proof required:

• A receipt showing installation of the device, OR
• A statement from agent advising that the device is currently installed, OR
• A declarations page from another carrier showing the anti-theft discount granted for the vehicle

ALL OTHER STATES:
This type of theft device is set when a vehicle operator does not need to perform any act to activate the alarm. An engine kill switch or a computer chip in the ignition key are considered such a device. Discount applies to comprehensive coverage only.

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A device which disables the vehicle by making the fuel, ignition or starting system inoperative. A separate manual step is NOT required to engage the device.

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This discount applies when the vehicle is equipped with passive seat belts that fasten automatically without any action by the driver or front seat passenger.

Proof is required if the discount is not automatically generated by the VIN:

• Window sticker, OR
• Buyers order, OR
• Photo inspection, OR
• Statement on company letterhead from manufacturer, authorized mechanic, repair or body shop.

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Coverage for property damage to a vehicle insured under the "collision insurance" and "comprehensive insurance" sections of your policy.

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The date when your current insurance policy expires. This date can be found on your current policy, Declaration (or "DEC") page, insurance identification card or recent cancellation notice. This date is not to be confused with the date of your next payment or when your renewal payment is due.

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The length of time that the policy is in force. In most states, Progressive offers annual and semi-annual policies.

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The place where you will reside for the majority of your policy term.

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The person who drives the car most often.

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This type of theft device is a tracking system that will automatically contact a response center where a homing device can locate the vehicle. The discount applies to comprehensive coverage only.

Proof required:

• Proof in the form of copy of window stickers, OR
• If installed at a later time, a copy of the contract and installation, OR
• Copy of a service agreement, OR
• Letter from dealership, etc., on company letterhead confirming installation of Homing Device/Tracking System/Recovery Device is required. The letter must specifically identify what type of device/system is installed.

Acceptable Tracking/Recovery Systems:

• Forcetracker
• OnStar - GM mobile tracking and security system
• Visteon Rescu (Ford)
• Alpine Electronics - Mobile Mayday System
• Lojack
• OnGuard/ATX Technologies
• VEMS
• Toyo Guard
• Tele Aid (Mercedes)
• Teletrac or Teletracer

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Rental Reimbursement coverage pays expenses to rent a car if you have a loss covered under Comprehensive Coverage or Collision Coverage. Pays up to the limit selected per day to the maximum indicated.

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The named insured or listed agent on a policy may request to designate any other person listed on the policy as a "second named insured". The second named insured has the same coverage under the policy as the named insured.

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Stated Amount (auto only) - Stated Amount is a way of rating that provides coverage up to either actual cash value of vehicle or stated amount provided by insured -- whichever is less. Rating vehicle stated amount does not guarantee insured will receive stated amount in event of loss. See Claims Payout for additional information.

Example: Insured assigns stated amount of $15,000 to restored 1965 Ford Mustang. If market survey states value of restored 1965 Ford Mustang is $13,000, Claims will pay out maximum of $13,000. If market survey states value of Mustang is $18,000, Claims will pay out maximum of $15,000 (determined by stated amount on policy).

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Towing and Labor coverage reimburses you up to the limit selected for emergency towing of your car.

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The vehicle must be equipped with a tracking system that automatically contacts a response center where a homing device can locate the vehicle. This discount applies to comprehensive coverage only.

Proof required:

• Proof in the form of copy of window stickers, OR
• If installed at a later time, a copy of the contract and installation, OR
• Copy of a service agreement, OR
• Letter from dealership, etc., on company letterhead confirming installation of Homing Device/Tracking System/Recovery Device is required. The letter must specifically identify what type of device/system is installed.

Acceptable Tracking/Recovery Systems:

• Forcetracker
• OnStar - GM mobile tracking and security system
• Visteon Rescu (Ford)
• Alpine Electronics - Mobile Mayday System
• Lojack
• OnGuard/ATX Technologies
• VEMS
• Toyo Guard
• Tele Aid (Mercedes)
• Teletrac or Teletracer

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Conventional Trailer

5th Wheel Trailer

• Similar to conventional trailer designed for vacation camping use, but has a raised forward section allowing a bi-level floor plan
• Designed to be towed by a pickup truck or other vehicle equipped with a fifth-wheel hitch
• Typically ranging from 12 to 35 feet in length
• Contains living facilities

• A horse or utility trailer modified (typically by the owner) from its original manufactured design
• A horse or utility trailer not manufactured by a typical trailer manufacturer

A horse trailer is

• Designed primarily to haul animals and/or property

Mounted Truck Camper
A mounted truck camper is

• Designed to be loaded onto or attached to the bed of a pickup truck
• Not a truck cap

• Designed to be towed by an automobile or light truck on a bumper hitch
• Constructed with collapsible sidewalls that fold or slide down for easy towing
• Typically under 12 feet long

• Designed to be towed by an automobile or truck on a bumper hitch
• Can be enclosed or have open sides

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The vehicle identification number (VIN) is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN number is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car.

Motorcycle Serial Number (VIN):

The vehicle identification number on your motorcycle. This number is found on the motorcycle frame, and is listed on the motorcycle registration and title. The motorcycle serial number is a combination of letters and numbers from 10 to 17 characters in length that can be used to identify the make, model, and year of your motorcycle.

Watercraft Serial Number (HIN):

The hull identification number on your watercraft. This number is found on the watercraft hull, and is listed on the watercraft registration and title. The watercraft serial number is a combination of letters and numbers from 10 to 17characters in length that can be used to identify the make, model, and year of your watercraft.

Motorhome Chassis Identification Number (VIN):

The vehicle identification number for your motorhome chassis. Your motorhome actually has two numbers one is the chassis "vin" number and the other is the serial number that the coach manufacturer assigns to the vehicle. To locate the chassis "vin" number look in the area of the drivers seat, there will be a sticker on the wall that will have all the coach information. Find the 17 character number that is on that sticker and labeled as the chassis "vin" number. This number can be used to identify the make , model, and year of the motorhome chassis.

Trailer identification number (VIN):
The vehicle identification number (VIN) of your trailer. This number may be located on the front "A" frame just to the rear of the hitch coupler; or inside the trailer near the entry door. If the vehicle identification number (VIN) is not known, enter 'UNKNOWN' in the VIN field.

Travel Trailer identification number (VIN):

The vehicle identification number on your travel trailer. This number can be found in two places on your trailer. It is stamped into the front "A" frame of every trailer just to the rear of the hitch coupler, usually on the right side. The other location is inside the trailer near the entry door on a sticker that the manufacturer installs at time of production. This number is 17 characters in length and can be used to identify the year , make and model of the trailer.

Snowmobile identification number (VIN):

The vehicle identification number on your snowmobile. This number can be found on the frame of the vehicle where your right foot would rest while driving the snowmobile. It is also the same number that is listed on the title to the snowmobile. The number is 7 to 17 characters in length and will identify the year , make and model of the snowmobile.

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AUTO:
A four-wheeled vehicle designed for passenger transportation that does not fit into any of the categories listed below.

TRUCK, SUV or VAN:
Truck--A vehicle with an enclosed cab and an open body with low sides and tailgate.
SUV (Sport Utility Vehicle)--A rugged vehicle similar to a station wagon, but built on a light-truck chassis.
Van--A multi-purpose enclosed motor vehicle having a box-like shape, rear or side doors, and side panels often with windows.

CONVERSION VAN or CONVERSION TRUCK:
A vehicle that leaves the manufacturer unfinished, and is sent to a second manufacturer to be completed.

CUSTOMIZED or other MODIFIED VEHICLE:
A vehicle that has had its structure or performance altered from the initial design. This is done by changing some or all
vehicle body panels or internal components.

COMMEMORATIVE or COLLECTOR'S EDITION:
A vehicle manufactured on a limited basis, often to commemorate a special event or anniversary.

TRAILER:
A trailer drawn by a passenger automobile or non commercial truck. May be used for vacation/camping use or to haul property and/or animals.
Trailer types include:

• Conventional Trailer
• 5th Wheel Trailer
• Homemade Trailer
• Horse Trailer
• Mounted Truck Camper
• Pop-Up Tent Trailer
• Utility Trailer

Note: If additional coverage such as full timers coverage, vacation expense coverage and/or replacement cost coverage are desired, a separate policy will be required. For assistance, please call Customer Service at toll free 1-877-776-2436.

REGISTERED KIT CAR, DUNE BUGGY, SAND RAIL or BAJA:
Kit Car--A vehicle made by fitting a fiberglass body to an existing chassis and engine.
Dune Buggy--A modified vehicle which has a fiberglass body adapted to a Volkswagon chassis.
Sand Rail--A dune buggy with no surrounding body.
Baja--An off-road recreational vehicle.

ELECTRIC or NATURAL GAS VEHICLE:
Electric Vehicle--A vehicle which derives its power from rechargeable batteries rather than a gasoline engine.
Natural Gas Vehicle--A vehicle manufactured or modified to operate on natural gas.

MOTORHOME, TRAVEL TRAILER, MOTORCYCLE or BOAT:
Motorhome--A large motor vehicle which is equipped as living quarters.
Travel Trailer--A trailer drawn by a passenger automobile and equipped for use as a dwelling.
Motorcycle--A two-wheeled automotive vehicle having one or two saddles.
Boat--A small vessel for travel on water.

EMERGENCY VEHICLE:
A vehicle equipped for transporting the injured or sick.

LIMOUSINE:
A chauffeur-driven vehicle which is used to transport passengers.

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*Other terms, rules, and conditions may apply.

AUTO:

Commute--Vehicle is used to drive back and forth to work or school or to a drop off site.  Vehicle is not used in business or occupation. 

Business--Vehicles:

• used by sales or service representatives OR for consumer oriented direct home sales;
• used in business trips, trips to bank or post office, picking up supplies;
• used by real estate or insurance agents, lawyers, doctors, accountants or other professionals visiting multiple locations;
• owned or leased by a partnership or corporation;

Note: Business is not a valid primary use for a Trailer.

Pleasure--Vehicle is used only on weekends or to and from the store.   Vehicle is not used for commercial, business purposes, or commuting to work or school.

Farm--Vehicle is used primarily on a farm, ranch or orchard.

Artisan (Tradesman)--A single vehicle operated by you in a trade or business where the vehicle is:

• owned or leased by an individual;
• operated solely by the named insured or other resident relatives;
• used to transport tools or other materials where such transport is incidental to your trade or business;
• at no more than two (2) job sites per day;
• not used to transport explosives or flammable materials and does not carry equipment weighing more than 500 pounds.

Commute--Vehicle is used to drive back and forth to work or school or to a drop off site.
Vehicle is not used in business or occupation.

Off Road--Vehicle is used solely for off-road use.

Show Bike or Parade--vehicle is at anytime used for parade or show purposes.

Pleasure--Vehicle is used for recreational purposes only.

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The model year that the vehicle was manufactured.

Note: If the vehicle is a homemade trailer enter "1901" as the model year.

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