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Prepayment Penalty
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Refers to a financial penalty for early repayment of a loan. Prepayment penalties are allowed in some form in some, but not all, states.
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Expiration Date
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The date on which coverage ends. Policy expiration date is found on current policy documents on the Declarations page, insurance ID card, or cancellation notice.
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Contributory Negligence
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In some states, a doctrine of law that may prevent claimants from recovering any portion of their damages if they are even partially at-fault or negligent.
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Snow Tire
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A particular type of tire made specifically for use in winter or snowy conditions. Using snow tires on dry surfaces typically provides excessive road noise thanks to the aggressive tread design of snow tires.
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Balancing
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After a tire is mounted onto a rim, weights are added to each side of it to make sure it doesn't wobble when rotating. This is called balancing the wheel. Being unbalanced by as much as 1/4 of an ounce on either side of the rim can make your vehicle's front end shake at higher speeds.
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Forged
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A manufacturing technique by which a solid block of alloy material is shaped into a rim by way of intense heat and pressure.
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Risk
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Refers to the likelihood or chance of incurring a loss.
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CLUE Report
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Comprehensive Loss Underwriting Exchange (CLUE) report. Provides claim history information.
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Indemnification
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Refers to the act of providing compensation for a loss in order to make the individual suffering the loss whole again, or at least to the approximate financial position prior to the loss.
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Comparative Negligence
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In some states, this is a doctrine of law that may enable claimants to recover a portion of their damages even when they are partially at-fault or negligent. Each party's negligence is compared to the other's and a claimant's recovery can be reduced by the percentage by his/her own negligence.
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Material Damage
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Refers to all property-related damages that are covered by the policy.
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Wheel Diameter
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This is the diameter of a rim, measured in inches, and expressed as the last number in the overall tire size. For example, a tire with the size of P235/75R15 would have wheel diameter of 15 inches.
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Due at Signing
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This refers to the total amount of money being paid at the time the lease is signed. This includes the down payment, trade-in, taxes, fees, any month's payments being paid in advance, and any incentives that are being applied to the overall cap cost reduction. This amount is typically payable via cash, credit card, check, and title transfer of a trade-in.
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Hybrid
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This describes a vehicle which utilizes an electric motor in unison with an internal combustion engine to increase fuel efficiency and make for a more environmentally friendly automobile.
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Service Rating
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A service rating is given to tires used in working applications. These ratings can be for long-haul, stop-start, multi-point, and long-haul heavy load.
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Destination Charge
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This is a fee that is charged to the dealership by the manufacturer. Dealerships do not mark this fee up, as it is fixed. All dealerships are charged the same destination fees, regardless of location.
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Mold Serial Number
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A number stamped into the sidewall area of a tire which can be used to trace the tire back to its original manufacturer.
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Good Student Discount
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Discount available through many auto insurance companies for maintaining certain grade point average (GPA).
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Wheel Base
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The distance, lengthwise, between the center point of the vehicle's front and rear wheels.
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Slick (Racing Slick)
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A particular type of tire used in racing which contains no tread blocks. Slicks employ a smooth surface for more overall contact to the surface of the road. With the heat buildup caused by the high speeds of racing, the rubber of the tire becomes softer and provides a better grip to the flat surface of the racetrack.
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