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glossary

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terms that start with ‘p’

P & C insurance

See property and casualty insurance.


Passenger

A passenger (also known as a rider or guest) is any person in the vehicle other than the driver. This includes individuals traveling via car, truck, motorcycle, or any other type of motor vehicle.

See also: driver

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Passive alarm

A passive alarm is a type of car alarm that is automatically activated and emits warning sounds when someone tries to get into your car. Once the passive alarm has been triggered, the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may receive a car insurance discount if your car is fitted with such an alarm.

Related link

Car insurance discounts


Peril

A peril is anything that can cause damage or loss to your property. This can be a wide range of things, from wind to theft to smoke.

See also: named peril, open peril

Related links

Renters insurance quote
Home insurance quote


Permissive use

Permissive use means you grant someone permission to drive your vehicle. Generally, if someone gets into an accident while driving your car with your permission, your insurance provides the same coverage as when you're behind the wheel. In some states, however, permissive drivers have reduced coverage.

See also: excluded driver

Related link

Myth: car insurance follows the driver


Personal injury protection

Personal injury protection (also know as PIP) is a kind of car insurance coverage in no-fault states that can help cover medical-related expenses after a car accident, regardless of fault. In some states, PIP can also pay for lost wages and other similar losses.

PIP is often mandatory in no-fault states, although it can be declined in some. Specific protections afforded by this type of car insurance coverage and limits on personal injury protection payments vary widely from state to state.

See also: no-fault insurance

Related link

What is personal injury protection?


Personal liability

Personal liability (also known as personal obligation or personal responsibility) refers to a situation in which an individual is legally responsible for damages caused to another party or someone's property.

When someone is deemed personally liable, he or she is financially obligated to compensate the other party for damages in accordance with national and state liability laws.

Policyholders may carry personal liability coverage on their home insurance, car insurance, and virtually any other type of property and casualty insurance policy they own. Individuals may also purchase personal umbrella insurance in order to insure against liability situations not covered by their other insurance policies.

See also: liability coverage, medical payments coverage, no-fault insurance

Related link

Minimum auto insurance requirements


Personal watercraft insurance

Personal watercraft insurance (also known as PWC insurance or personal water craft insurance) protects your Jet Ski®, Sea-Doo®, or WaveRunner® in and out of the water. Like boat insurance, personal watercraft insurance can cover roadside assistance, on-water towing and labor, total loss replacement, water skis, and personal effects replacement.

See also: Jet Ski insurance, SEA-DOO insurance, WaveRunner insurance

Related links

PWC insurance quotes
FAQs on PWC insurance


Pet insurance

Pet insurance (also known as animal health insurance and pet health insurance) can help pay your veterinary fees if your dog, cat, bird, or other insured pet is injured. Its primary use is to cover fees relating to any illness or injury including hospitalization, referrals, and prescriptions.

Our pet insurance partner, Petplan, offers coverage for cats and dogs.

Related link

Pet insurance quotes


Physical damage coverage

Physical damage coverage (also known as property damage coverage) is a form of car insurance that covers the policyholder's vehicle. If a policyholder is found at fault in an accident, the insured will file an insurance claim under the car insurance policy's physical damage coverage.

See also: adjuster, collision coverage, comprehensive coverage

Related link

Esurance claims information


Pleasure use

Pleasure use, in the context of car insurance, means that you typically drive your car for fun, with no regular commuting or commercial use.

See also: primary use


Policy

Your policy is the contract that states what your car insurance coverage includes (coverages, limits, and deductibles), as well as your official annual premium.

It's a document or group of documents that typically includes a declarations page, a list of exclusions, and other terms and conditions of your coverage.

See also: car insurance, declarations page

Related link

Policy document FAQs


Policy expiration date

The policy expiration date is the date your insurance coverage ends if your policy isn't renewed.

The expiration date can be found on the declarations page of your car insurance policy, on your insurance card, or on a recent car insurance renewal notice.

See also: declarations page


Policy term

A policy term is the length of time an auto insurance policy is valid. Auto insurance policies from Esurance have a policy term of 6 months or 12 months, depending on your state of residence.


Premium

See rate.


Primary coverage

Primary coverage (also known as primary insurance) is the first coverage to help pay damages or expenses after a claim is filed whether or not there's other coverage in place. For example, if you're found at fault in a car accident and you have a car insurance policy as well as an umbrella policy, your car insurance policy will act as your primary coverage.

See also: secondary coverage, liability coverage, umbrella insurance


Primary driver

The primary driver is the person named on a car insurance policy who drives a specific car most frequently.


Primary policyholder

The primary policyholder is the person who is billed for the auto insurance policy and who serves as the main point of contact with the insurance company.


Primary residence

Your primary residence is the home address and ZIP Code you list on your policy as your place of residence for the duration of your policy term. Your primary residence is usually the same as your garaging location, unless you keep your car elsewhere.

See also: car insurance, garaging location

Related links

How your ZIP Code can impact your car insurance rate
Car insurance rates and your primary residence
Did you know moving can affect your car insurance?


Primary use

A vehicle's primary use is how the car is typically used. Auto insurance companies usually classify primary use as commuting, commercial, or pleasure use.


Proof of insurance

Proof of insurance (also known as POI) is any legal, signed document provided by your insurance company that shows the effective date of your active insurance policy.

See also: declarations page, SR-22, DL-123, FS-1

Related links

How do I print my insurance card?
Esurance blog: Can your smartphone count as proof of insurance?


Property and casualty insurance

Property and casualty insurance (also known as P&C insurance) financially protects homes, condos, businesses, cars, and other assets against damages and loss. Property insurance generally protects the property itself while casualty insurance (often known as liability insurance) covers policyholders against legal liabilities caused by injury or property damage to others.

Generally speaking, property and casualty insurance differ from life and health insurance policies because they protect against liabilities not covered by other insurance policies.

See also: casualty insurance


Property damage liability coverage

Property damage liability coverage protects you if you are held responsible for damaging someone else's property in a car accident.

Property damage liability coverage helps reimburse another person for their damaged property (such as a car, a fence, or a home) and helps pay your expenses in the event of a related lawsuit.

The amount covered by property damage liability is capped at the limit you choose when you buy your auto insurance policy.

Related link

What is property damage coverage?


Property insurance

See property and casualty insurance.


Provisional license

See learners permit.


PWC insurance

See personal watercraft insurance.