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terms that start with ‘l’

Lapsed coverage

Lapsed coverage occurs when an individual is without an active car insurance policy. A lapse in your coverage could indicate a higher level of risk for insurers and can often result in higher premiums in the future.

Driving without at least the basic liability coverage is illegal in many states and can saddle you with steep fines and penalties.

See also: continuously insured, SR-22

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Learners permit

A learners permit (also known as a drivers permit, learners license, or provisional license) is a document issued by the DMV allowing a new driver to begin driving. Generally, state laws require that the holder of a learners permit be accompanied by a licensed adult driver when operating a motor vehicle.

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A lender is any individual or organization that provides monetary loans. When someone obtains a loan, he or she must pay the lender back in full, with interest, within an agreed-upon period.

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A lessee is anyone who is leasing a property — typically a house or vehicle. A lease is a contract that grants the lessee exclusive use of a property for a specified period provided he or she makes the agreed-upon payments.

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Letter of experience

A letter of experience is documentation provided by an insurer verifying the length of time a policyholder had or has had insurance with the company. It can also show the length of time a customer was insured before switching companies or canceling a policy.

Because most insurance companies offer discounts that depend on how long applicants have kept continuous coverage without interruption, letters of experience are generally required to obtain a better insurance rate.

See also: car insurance

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LexisNexis is a leading provider of consumer reports. Esurance uses LexisNexis to obtain applicants' credit-based insurance scores in many states. Insurance companies use these scores, along with various other factors, to determine car insurance rates.

See also: driving record, Motor Vehicle Report, car insurance

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Liability is a term that broadly means legal responsibility. If you run a stop sign and hit another car, you may be found liable for the damages to the other driver's car.

Liability coverage

Liability coverage protects you from having to deplete your personal assets to pay for damages if you're held responsible for injuries or damages arising from a car accident.

The 2 main types of liability coverages in a car insurance policy are bodily injury and property damage. These coverages are required in most states.

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License points

See Motor Vehicle Report.

Life event

The term "life event" refers to an occurrence in life that significantly changes a person's status or living situation. Common examples of life events include marriage, divorce, serious medical diagnosis, disabling injury, pregnancy/childbirth, buying a house, and death of a spouse or close relative.

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Life insurance

Life insurance policies typically cover your funeral expenses, children's education, mortgage payments, and certain daily or monthly bills in the event of your death. The sooner you get life insurance, the less you'll generally pay for it over time.

The 2 main categories are protection policies, which are designed to provide a benefit when a specified event occurs, and investment policies, in which the main objective is to facilitate the growth of capital by regular or single premiums.

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Limited lifetime warranty

A limited lifetime warranty (also known as a lifetime warranty, limited warranty, or vehicle warranty) is a contract between a car buyer and seller that entitles the buyer to receive compensation if the purchased vehicle fails to meet specified criteria.

For example, if the car's engine breaks down during proper usage, the buyer may be reimbursed in accordance with the limited lifetime warranty's conditions.


A limit is the maximum amount an insurance company will pay, per coverage, for a covered loss. Though you can choose your limits for certain coverages, some states require you to buy certain minimum levels of car insurance coverage.

Loan/lease gap coverage

See gap insurance.


A lowrider is a vehicle that has been customized in a way that lowers its body closer to the ground. This is generally accomplished through the use of hydraulic jacks.

See also: collector cars

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