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Texas insurance glossary

Policy period

The policy period is the span of time the coverage runs for, shown on the declarations page as a start date and an end date with times attached.

Sources checked

Most Texas personal auto policies run six months rather than twelve, which is the single most misread thing about an auto quote: a figure quoted for the term is not an annual figure, and comparing one against the other is how a policy looks half the price of an identical one.

The period ends at a stated time on a stated date, not at the end of that day. Coverage that is not renewed or replaced before then produces a lapse, and a lapse is what turns a paperwork problem into an enforcement one.

A cancellation ends the period early. A renewal starts a new one.

Sources: TDI — home insurance glossary; TDI — consumer bill of rights for personal automobile insurance (CB005). Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Renewal A renewal is the insurer offering a new policy period on the existing policy, usually with a revised premium, which takes effect if the offer is accepted and paid.
  • Lapse A lapse is any period with no auto policy in force, whether the policy was cancelled, not renewed, or simply never paid.
  • Cancellation A cancellation is the termination of a policy during its term, by the insurer or by the policyholder, rather than at the end of the term.
  • Premium A premium is the amount charged for an insurance policy for a stated term, calculated from a carrier’s rates as filed with the Texas Department of Insurance.
  • Declarations page The declarations page is the summary at the front of a policy naming the insured, the vehicles or property, the coverages, the limits, the deductibles and the term.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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