Glossary Of Auto Insurance Terms

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Auto Insurance Term Glossary from Insurance.com

Do you know what an SR-22 Form is? What about PIP or No-Fault? Find out the definition of important insurance terms.

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Actual Cash ValueFair market value of an item at the time it was damaged, stolen or destroyed. After a loss, your company will review the condition of your car's body, interior, tires, and additional equipment. Based on the pre-accident condition of the car, a claim adjuster locates similar models for sale in your area, and uses those prices to determine the Actual Cash Value.ActuaryA specialist in the mathematics of risk, especially as it relates to insurance calculations such as life expectancy, prediction of accident frequency, and loss reserving.AdjusterIndividual employed by an insurance company to settle claims brought by policyholders or claimants. The adjuster evaluates each claim and then makes payment based on the coverage available in its policy contract.AppraisalA professional, formal, written estimation of the value of property. Damage appraisals may be completed by an insurance adjuster or vehicle repair specialist.Assigned Risk PlanState-managed auto insurance plan for individuals who cannot obtain conventional liability coverage because of their poor driving records. These drivers are placed in a residual market with insurance companies a-signed to write policies for them at higher prices. Assigned risk plans also exist for health insurance.AttachTo seize property or a-sets, or to obtain a legal writ granting the right to seize the property or a-sets. This usually occurs when an individual has outstanding debt, is financially unable to pay the debt in cash, and has a-sets of sufficient value to cover the amount of the debt.

Bodily Injury Liability CoveragePart of an auto insurance policy that covers you, up to the policy limits, for car accidents that result in bodily injuries to other drivers or pedestrians for which you are legally at fault. Covered losses generally include medical expenses, pain and suffering, and lost income. Legal defense costs are covered if you are sued as a result of the accident.

CarrierInsurance company that actually underwrites and issues the insurance policy. The term refers to the fact that the company carries (or a-sumes) certain risks for the policyholder.CasualtyLiability or loss resulting from an accident.ClaimRequest by an insured for the insurance company to cover an incurred loss. A claim may be filed online, by phone or in writing.ClaimantOne who submits a claim for an incurred loss.CollateralAsset pledged to a lender until a loan is repaid. If the borrower defaults, the lender has the legal right to seize the collateral and sell it to pay off the loan. Comprehensive and Collision coverages are required by lenders when a car is the collateral for a loan.Collision CoverageCollision coverage pays for damage to your car caused by an impact with another vehicle or object or a rollover. Collision coverage includes a deductible, such $250 or $500. You are responsible for paying the deductible when you get the damage repaired. For example, if the damage was $1,500 and you have a $250 deductible, your company pays $1,250 toward the repair costs.Combined Single Limit

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Glossary of Auto Insurance Terms | Utah Insurance Department

Arbitration: The process in which a third-party arbiter examines facts presented by both you and the insurance company when you disagree about a settlement offer. Arbitration can be binding or non-binding.

Bodily Injury Liability Coverage: Pays for another person’s bodily injury or death in an accident that you may be found legally liable to pay. Current Utah Code requires a minimum limit of $25,000/$65,000, or combined single limit of $80,000.

Betterment: A condition relating to original equipment, or older parts, on your automobile, when having been damaged in an accident may only be replaced with new part(s). The resulting improved condition of the vehicle is known as betterment. Consequently, insurers may ask the insured to contribute to the cost of the repair.

Cancellation: If you don’t pay your premiums, an insurance company can cancel your personal auto policy by giving 10 days written notice. The company is required to give you 30 days written notice if it is canceling your policy for any other reason.

Collision Coverage: Pays for damage to your vehicle when it collides with another vehicle or object, or if it overturns. Your lender may require this coverage if you have a loan on your vehicle.

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Key Terms for Understanding Car Insurance - NerdWallet

Category: Car Insurance Definitions

Tired of vague or confusing car insurance jargon? Here’s what those terms in your auto insurance policy actually mean in plain English.

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A glossary of auto insurance terms can really help you understand your policy as you deal with a claim. It can also help you compare auto insurance rates accurately as you’re shopping for car insurance.

A crash that you cause, either partially or completely. After an at-fault accident, your liability insurance pays out up to the chosen limits for other people's injury and property damage bills, plus your legal defense costs if you're sued.

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Property and Casualty-General Insurance Terms, Co-insurance and ProRata Math

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All right this is melissa the insurance exam queen and we have a three hour property and casualty class so let's go ahead and get ...

Glossary of Auto Insurance Terms | Car Insurance Terms Guide

Get information about various terms of Auto Insurance. It will help you to find the best car insurance policy at the cheapest rates.

Certain auto insurance terms are not very common and a bit complex to understand. While buying auto insurance, the company asks for a different kind of information and at that time you might get confused between different terms.

Understanding auto insurance terms will help you during the process of buying a policy. Hence; we created this detailed guide to car insurance terms and definitions which you need to know before buying car insurance.

Actual Cash Value: Also pointed as ACV. ACV can be calculated by subtracting the depreciation cost from the cost to replace your vehicle. The ACV of your car depends directly on the 3 major factors of depreciation: vehicle condition, mileage, and age of the car. This process is to help the insurance providers decide the value to be paid after the vehicle is declared as a loss.

Adjuster: An employee of the insurance company who settles the claim of the policyholder. The adjuster’s work is to evaluate the claim and then decide the payment the insurance company will give to the claimant.

Agent: An insurance agent is licensed to a-sist you in buying the right insurance policy for your car at the best price. These agents can be a-sociated with one insurance company or with different insurance companies.

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Glossary of Auto Insurance Terms - James Little Agency

Glossary of Auto Insurance Terms - A general understanding of basic auto insurance terms will help you understand what you are

The following auto insurance terms are offered to give you a basic explanation of the terms you may hear or read when shopping for auto insurance. Feel free to give us a call at 817-380-452 if you have questions about any of the terms listed here.

Benchmark rate(s): The rates set annually by the Commissioner of Insurance that rate-regulated insurance companies use to reference their rates. Rate-regulated insurance companies filing rates within a range of 30 percent above or below the benchmarks may use them immediately upon filing without prior approval. A company that wants to set its rates outside this range must receive the Commissioner´s prior approval.

Collision coverage: Pays for damage to your car without regard to who caused an accident. The company must pay for the repair or up to the actual cash value of your vehicle, minus your deductible.

Declarations page: The page in your policy that shows the name and address of the insurer, the period of time a policy is in force, a description of the vehicle, the amount of the premium, and the amount of coverage.

Earned premium: The portion of a policy premium that has been used to actually buy coverage, or that the insurance company has “earned.” For instance, if you have a six-month policy that you paid for in advance, two months into the policy, there would be two months of earned premium. The remaining four months of premium is called unearned premium.

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Auto Insurance Terms, Explained | SoFi

Need help understanding car insurance terms and definitions? Take a spin with this glossary of auto insurance terminology.

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Each insurer’s definition of accident forgiveness may vary, and it isn’t available in every state. Some insurers include it at no charge, or it may be an add-on, which means it could be earned or purchased.

Actual cash value is the term used to describe what a vehicle was worth before it was damaged or stolen, taking depreciation into consideration. The amount is calculated by the insurer.

An adjuster is an employee who evaluates claims for an insurance company. The adjuster investigates the claim and is expected to make a fair and informed decision regarding how much the insurance company should pay.

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Auto Insurance Terms Definitions and Phrases | Glossary

Category: Auto Insurance Terms Definitions

Plymouth Rock A-surance provides a glossary of auto insurance terms and a detailed description about definitions and industry phrases.

Some auto insurance carriers use technical jargon that may deceive customers into expensive and unnecessary coverages. At Plymouth Rock A-surance, we understand that you most likely will never need to know how Bodily Injury differs from Collision, except when purchasing an auto insurance policy. Unlike other car insurance carriers, we make sure you know what you are buying from us and that it fits your family’s needs.

Please note these terms and definitions are provided for informational purposes only, and are not intended to alter or modify any auto insurance policy. Please review your insurance policy for full details about coverages and other terms. In the case of any inconsistency, the terms and definitions of the policy contract will control their use.

Adjuster: An employee or representative of the insurance company who investigates the damage (by physical inspection of the involved vehicles and property, examination of documents and talking with involved persons) and settles the claim.

Anti-Theft Device: A device that helps prevent or deter vehicle theft. Active devices can be used to track and find a vehicle. Passive devices prevent the vehicle from being stolen in the first place by disabling it: a steering wheel lock; a car alarm; a hidden kill switch; a fuel cutoff valve.

Bodily Injury: Means physical injuries or death suffered by a person. If an insured person is legally liable for an accident, bodily injury coverage pays for the injuries/death of persons involved in the accident other than the insured driver. Bodily injury coverage may also pay for legal defense, if the insured person is sued. Exclusions may apply.

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Glossary of Auto Insurance Terms | HiRoad

Category: Auto Insurance

Use our glossary to find definitions for common insurance terms to better understand your policy and coverage.

A third-party, like a landlord or rent-to-own company, that has an interest in ensuring property is insured. A party listed as an "additional interest" on your renters policy gets policy notifications such as changes or cancellations, but does not have any coverage under the policy.

Provides coverage for damage caused by water which backs up through sewers or drains, including sump pumps, sump pump wells, or any type of system designed to remove surface water. (Coverage is subject to the limit selected; will be an additional amount on your bill.)

For auto insurance, there is a key distinction between “business” and “commercial” uses. Commercial uses require separate insurance. Generally, if the job does not depend solely on driving, then it is more likely to be a business use. A realtor driving to show a house, a photographer driving to a photoshoot, or a caretaker driving to a family’s house are examples of business uses.

A formal request for coverage or compensation, not necessarily an amount of money. For example, a claim can include defense counsel representation if there is a suit filed for damages. The amount of money an individual believes they should be paid by an insurance company as a result of an accident, including property damage, bodily injury or both.

Comprehensive coverage pays for a vehicle that's stolen or damaged by causes other than collision or upset. Some examples include damage caused by: fire, wind, hail, earthquake, theft, vandalism, or hitting animals in the road.

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Glossary Of Insurance Terms And Definitions | GEICO

Category: Auto Insurance

Insurance can be confusing. Use these insurance terms and definitions to help you understand your policy.

Auto Motorcycle ATV Homeowners Renters Condo Mobile Home Boat/PWC RV Life Umbrella Identity Protection Landlord Flood Travel Overseas Business Owners General Liability Professional Liability Workers' Compensation Medical Malpractice Commercial Auto Rideshare Collector Auto Pet Jewelry Mexico Auto Earthquake Cell Phone Event Bicycle

When you click "Continue" you will be taken to a site owned by , not GEICO. GEICO has no control over their privacy practices and a-sumes no responsibility in connection with your use of their website. Any information that you provide directly to them is subject to the privacy policy posted on their website.

A statistician who computes insurance risks and premiums. Actuaries keep GEICO profitable and financially stable by setting prices, a-sessing trends, and determining how much to hold in reserve to pay claims.

A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state a-signed risk plan which specifies that each company must accept a proportionate share of these drivers/owners.

The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement.

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Consumer Glossary

Category: Insurance Terms

The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Accident Only - an insurance contract that provides coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accident.

Accident Only or AD&D - policies providing coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accidents. Types of coverage include student accident, sports accident, travel accident, blanket accident, specific accident or accidental death and dismemberment (AD&D).

Accumulation Period - period of time insured must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.

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Insurance Terms Glossary | Understanding Common Insurance Terms

Category: Insurance Terms Insurance Terms Glossary

Not sure what insurance terms on your policy means? Take a look at our Insurance Terms Glossary to help give you a better understanding of your policy.

Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to a-sist understanding the language commonly used by insurance companies. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.

If you plan to start a new policy or renew your current policy with a different carrier or agency, it is important to review and understand the policy differences behind individual quotes from multiple carriers. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim for loss or damages in the future.

Select the first letter of the word or term to locate a definition and brief description. For example, to get help with the terms “Automobile Liability Insurance” or “Premium”, select either the letter A or P from the menu bar below:

An event or occurrence which is unforeseen and unintended. Accidental is an important concept of risk for insurance. The more unlikely the accident or the occurrence, the less expensive it is to insure.

(1) The time between the first premium payment and the first benefit payout under a deferred annuity; (2) A specified period of time, such as 90 days, during which the insured person must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.

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Auto Insurance Definitions & Terms – Nationwide

Category: Car Insurance Auto Insurance

Every industry has its own unique and quirky jargon. Auto insurance is no exception. But first, exactly what is car insurance? Car insurance is a contract between you and your insurance company. By applying for coverage, you’re agreeing to pay an auto insurance premium to the insurance company. In return, that company agrees to pay covered costs a-sociated with an auto accident once the deductible has been met under the policy terms.

Pays damages for injury or death resulting from a covered accident for which you are at fault. May also provide you with funds for a legal defense. Learn more about liability coverage.

A page in your policy – usually the front page – with basic information such as your name and address, description of the vehicle(s) insured, effective dates of the policy, amount of coverage and the premiums.

A law that requires owners and drivers of vehicles to have enough money on hand to compensate anyone they might injure in accident. Liability insurance is the most common way to satisfy this requirement.

Pays to reimburse a driver or passenger for medical or funeral expenses incurred in a covered accident, up to the limits of your policy. It also covers the medical costs of pedestrians you may have injured.

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Car Insurance Terms Glossary | CarInsurance.com

We define and explain every term that you may come across as you shop for car insurance or make a claim.

NOTICE: This document is for informational purposes only and is not intended to alter or replace the insurance policy. Additionally, this informational sheet is not intended to fully set out your rights and obligations or the rights and obligations of the insurance company. If you have questions about your insurance, you should consult your insurance agent, the insurance company, or the language of the insurance policy.

A sudden, fortuitous event or an unexpected, unforeseen event, not under the control of an insured and resulting in a loss. Often used to refer to a collision or insurance event. See What to do after a car accident

In most states, customers who have not had an at-fault accident in the previous five years qualify for this program. Accident forgiveness means that some insurance carriers won't add a surcharge to your premium after your next at-fault accident. See Accident forgiveness: What's the catch?

A statistician who computes insurance risks and premiums. Actuaries keep insurance carriers profitable and financially stable by setting prices, a-sessing trends, and determining how much to hold in reserve to pay claims.

A type of policy available for collectible, antique or custom vehicles that do not depreciate in value as the average car does. At the inception of your policy, you and your insurance company come to an "agreed value" for your vehicle and that is what will be paid out in the event of a total loss instead of actual cash value. See Auto insurance for collectible cars

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Insurance Terms And Definitions - All Insurance FAQ

Category: Term Insurance

Four types of insurance that most financial experts recommend include life, health, auto, and long-term disability.

The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

General Insurance Terms and Conditions means the general part of the Insurance Rules, which determine the main principles of legal relationships between the Insurer and the Client, the general terms and conditions for all insurance contracts concluded by the Insurer and applicable for all types of insurance offered by …

We begin with an overview of the types of insurance, from both a consumer and a business perspective. Then we examine in greater detail the three most important types of insurance: property, liability, and life.

Like most common-law concepts, it has taken many individual cases and many decades—in some cases, centuries—to develop a settled view of the necessary elements for a valid insurance policy. These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution.

Policy Conditions — the section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal.

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Glossary: Automobile Insurance Terms - FindLaw

Trying to understand all the terms used in relation to automobiles, particularly automobile insurance, can be a daunting task In many cases, terms relating to your

Trying to understand all the terms used in relation to automobiles, particularly automobile insurance, can be a daunting task In many cases, terms relating to your automobile insurance may be defined within the policy itself. In other cases, words may come up in conversation with your insurance agent, or after you have been involved in a car accident, which are not defined in the policy.

The following glossary of common terms related to automobile insurance may give you a better idea of what is being said. Be warned, however; your particular insurance policy may define these terms in a different manner, which may make a difference if you have to submit a claim.

Additional Insured - An individual or entity who is not specifically named as an insured within the policy itself, but for whom attachments, known as endorsements, to the policy provide a degree of protection. In some states, an additional insured can be treated differently from an additional named insured, who is an additional insured who is actually named within the policy itself and to whom all of the rights and responsibilities of the policy apply.

Bodily Injury Liability - Insurance coverage that applies when you are legally liable for injuring other people in an auto accident. Bodily injury liability provides payments to those injured individuals and pays your legal defense costs as well. Such coverage can be combined with property damage liability, as it often is, and be called "liability insurance."

Collision Insurance - Coverage under a policy which pays for damage to, or loss of, your own automobile from upset or collision with another object or vehicle. Collision insurance does not cover bodily or personal injury, and it may not cover other property damage liability arising out of the collision.

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28 Word Glossary of Insurance Terms | Scholle Law Firm

A glossary of insurance terms and jargon you need to know before talking to an insurance adjuster. Make sure you know your rights.

In the days, weeks and months after a car accident, chances are you’ll encounter many unfamiliar words, terms and phrases that you’ve never heard before. In this article, we hope to provide more than a mere definition of common jargon used by insurance companies during a car crash claim. Where possible, we will supply additional information that will help give you a practical understanding of the often confusing world of insurance terminology in our glossary of insurance terms.

Understand that there isn’t a book that all insurance companies must abide by. Therefore, there might be slightly different wording used by different insurance companies. However, the industry as a whole is unified on the basic concepts, and most insurance companies do use the same terminology.

After reading this glossary of insurance terms, you should be in a much better place to discuss your claim with friends and family, as well as address your claim with the insurance adjuster.

Facts of loss. This is what happened in the accident and is typically captured in the narrative of the accident police report. However, any verifiable fact can be considered part of the facts of loss. As a practical matter, discussions over facts of loss are typically restricted to those facts that could arguably make a difference in a decision over who caused the accident. Never underestimate the power of more information supplied to the insurance adjuster, especially if the information is objective in nature and not subjective opinion.

Reporting officer. This is the police officer who wrote the accident report. In some cases, a police officer witnessed an accident as it was taking place. You should know that this is not necessarily the reporting officer. The officer who witnessed the accident will be listed as a witness in the reporting officer’s accident report. The reporting officer will be listed at the bottom of the accident report along with their badge number. If you need to address an error or discrepancy in the accident report, the reporting officer is the person you will need to contact. If you aren’t getting a response from the reporting officer, contact their supervisor.

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Glossary Of Health Insurance Terms - JNL Insurance Services

Category: Insurance Terms

Oct 12, 2022 · Glossary of Health Insurance Terms · Copays for doctors’ visits, chiropractor and psychological sessions · Hospital fees, medical tests and services (like X-rays … Coinsurance – …

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Home [www.monumenttitleagency.com]

GLOSSARY. We have provided a list of our frequently asked questions and a glossary of terms used in the industry to help you understand these terms. Our Underwriter. Monument Title …

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Fords, NJ Insurance Agents | Five Star Insurance Agency, LLC

Five Star Insurance Agency, LLC is locally owned and operated, and we specialize in a myriad of insurance coverage options. Our experienced agents will make sure you have the best …

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