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Underwriting
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Process that an insurance company goes through to determine whether or not it will provide coverage to the applicant.
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Lease
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A fixed, long-term contract in which a consumer uses a vehicle which he/she does not own for a set period of time at a certain price, similar to renting.
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Door Placard
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The small metal plate attached to the inside of the driver's side door. The placard contains information about your vehicle's build date, tire specs, and load capacities, among other minor specifications.
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Gross Vehicle Weight (GVW)
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The Gross Vehicle Weight describes the weight of a vehicle plus fuel, passengers, cargo, and trailer tongue weight. It is the vehicle's curb weight plus its max capacity fully loaded.
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Shoulder
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This describes the rounded portion of a tire where the sidewall and tread pattern come together.
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Security Interest
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Term refers to the creditor's right to take property used as collateral to secure a loan, in the event of a default of payment or the borrower not living up to the terms of the loan agreement.
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Insurer
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Company or organization providing insurance.
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Indemnity
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This is a lease clause, or provision, that absolves the lessor from any responsibility of charges incurred by the lessee. These charges can include traffic tickets, accidents, and any criminal charges resulting from negligence with the vehicle. Since the lessor relinquishes possession of the vehicle to the lessee, the responsibility for all charges stemming from the vehicle become the responsibility of the lessee.
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Production Date
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The month and year that the vehicle's assembly was completed at the manufacturer.
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Advertising Fee
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This a negotiable fee that will be charged on vehicle purchases, typically 1 - 2% of the invoice price. This fee reflects the cost to the dealership for advertising the vehicle.
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Auto Damage
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Covered losses to a vehicle resulting from an accident or incident that reduce the value of a vehicle.
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VVT
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An acronym for Variable Valve Timing. VVT allows the internal-combustion engine in the vehicle to change the valve timing while the vehicle is running. This timing has a significant impact on engine performance.
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Hybrid Vehicle Lease
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The term used to describe the leasing of a hybrid vehicle. Hybrid vehicle leases often differ from regular vehicle leases in only one way, and that is the maintenance and wear-and-tear departments. Lessees are often restricted to certain repair facilities should the vehicle break down, and residual value is much more difficult to determine since hybrid vehicles have not been around for very long. This makes hybrid leases risky for both lessors and lessees until more hybrid lease history is established.
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Obligation
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Refers to the legal responsibility of a borrower to repay outstanding loans.
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Exclusions
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Provisions in an insurance policy that deny coverage for certain losses, locations, people and properties.
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Collision Insurance
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See collision coverage.
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Additional Insured
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An assured party who is specifically named on an insurance policy.
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Gap Insurance
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Also called gap insurance coverage or an umbrella rider. This is an add-on to the auto insurance policy that pays out the difference between the vehicle's actual cash value and whatever amount remains on an auto loan if the car is totaled in an accident.
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Property Damage Coverage
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Also called property damage liability coverage. This is coverage that covers any damage the insured causes to another person's property. Most states require this coverage.
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Trim Line
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The standard set of features on a particular vehicle, absent any options, special equipment, or additional body items like spoilers, paint, and decals.
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