Lapse: A Lapse is the termination of a policy due to non-payment of premiums. Depending on the length of time lapsed some companies will re-instate your policy if payment is made.

Liability insurance: Liability insurance pays for injuries to the other party and damages to the other vehicle resulting from an accident you caused. It also pays if the accident was caused by someone covered by your policy, including a driver operating your car with your permission.

Liability limits: The liability limits is the maximum amount your liability policy will pay. Depending on the state you live in minimal limits will very. But as an example – $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage per accident. This basic coverage is called “25/50/25” coverage.

Loss: The Loss is the amount an insurance company pays on a claim.