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insurance terms that start with ‘t’

Temporary car insurance

Temporary car insurance (also known as short-term car insurance) is coverage that can be bought for a short period of time. For instance, if you get rental car insurance because you don't have your own coverage, that's considered temporary car insurance.

See also: continuously insured, effective date, policy expiration date

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Third party

Third party refers to anyone with whom you are involved in an accident. For example, if you get into an accident with another driver, the other driver would be legally considered the third party and his or her insurance would be called third-party insurance.

See also: primary policyholder

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Three-wheeler insurance

See all-terrain vehicle insurance.


See citation.

Trip transit policy

A trip transit policy is coverage established for one specific shipment you're making. This is not to be confused with transit insurance or inland marine insurance, which cover multiple shipments made by a policyholder.

Tort law

A tort is a civil wrong in which a person's behavior has unfairly caused someone else to suffer loss or harm. Tort law, therefore, allows someone who is harmed to recover their losses.

When purchasing auto insurance in certain states, like New Jersey or Pennsylvania, you will be asked to choose either "limited tort" or "full tort." With limited tort, you give up the right to sue for compensation for pain and suffering if you are injured in a car accident — typically in exchange for savings on your car insurance premium.

With full tort, you are legally permitted to seek money for your pain and suffering due to any injury you receive in a car accident so long as you were not at fault. The full tort option typically raises your car insurance premium compared to the limited tort option.

Total loss

Total loss (also known as totaled or complete loss) refers to a situation in which an insured item suffers irreparable damage.

For example, if the cost to repair a wrecked car is more than 75 percent of its total value, the vehicle could be deemed a total loss. When this happens, the insurance company generally pays the policyholder a monetary amount that equals the total value of the damaged property before the accident, as determined by an adjuster.

See also: body shop, RepairView®, claim, adjuster, salvage title

Tow coverage

Tow coverage (also known as towing reimbursement coverage) is a benefit of roadside assistance coverage that pays the towing expenses for any covered vehicle, up to the defined limit. In most instances, the insured pays for the tow up front and provides his or her insurance company with the receipt. The insurance company then reimburses the policyholder for the towing cost.

See also: roadside assistance

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Travel trailer insurance

Travel trailer insurance is insurance you can buy to protect your travel trailer in the event of an accident. Travel trailer insurance can cover vacation liability coverage, full timer's coverage, emergency expense coverage, and more.

See also: international insurance, recreational insurance

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