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. Time period during which an insurance policy is in force. Comprehensive coverage pays to repair your vehicle, subject to a separate deductible. Car Insurance Terms & Definitions for Dummies. Personal injury protection (PIP) is a coverage in which your own insurance company pays you for medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. The section of an insurance contract containing such information as the name, description, and location of insured property; the name and address of the policholders; the period for which the policy is in force; premiums payable; and the amount of coverage. Dictionary of Insurance Terms -A- • Absolute Liability: Liability for damages even though fault or negligence cannot be proven. Auto insurance can be confusing! If there is a covered accident, collision coverage will pay for the repairs to your … Since the invention of the first car with an internal combustion hydrogen engine in 1807, automotive terminology has confused those not “in the know”. Please read your official policy for full details about coverages. Based on a work at www.EINSURANCE.com. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Misrepresentation Written or verbal misstatement of a material fact involved in the contract on which the insurer relies. Independent insurance agents believe that knowledge is power, and they are dedicated to providing consumers, not only with competitive rates and coverage, but with education and answers as well.. Business terminology shouldn’t be reserved for insurance agents. All Rights Reserved. New terms will be added to the glossary over time. Since the invention of the first car with an internal combustion hydrogen engine in 1807, automotive terminology has confused those not “in the know”. • Act of God: A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention. Torque. Nearly every state requires car owners to carry the following auto liability coverage: 1. Industries. A glossary of auto insurance terms can really help you understand your policy as you deal with a claim. Use features like bookmarks, note taking and highlighting while reading Insurance for Dummies. For example, your insurance provider might pay 80% of your claim leaving you responsible for paying the remaining 20%. Is coverage for injuries that you cause to others that you become legally liable … This is the amount you’ll have to cover before insurance pays a cent. Glossary of Commercial Insurance Terms Commercial insurance is divided into two main categories: property insurance and casualty insurance. Rotational force. The fact that an individual has caused three auto accidents in the past 5 years would be a _____ ____ for a company issuing auto liability insurance. 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: Don’t see an insurance term listed here? 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. Click here to zoom in. Personal Injury Protection. It’s important to understand your costs and key health insurance terms, so you’ll know what services your plan will pay for and how much each visit or … Medical Insurance Terminology For Dummies. Car servicing customer satisfaction survey results. We’ve listed the most common car terms and their meanings in order from most important to least important. www.bls.gov. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Insurance.com is not affiliated with any state or government agency. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. The cost of repairing or replacing damaged property with property of the same kind and quality, less depreciation (i.e., in the same physical condition as the original property prior to damage). Health insurance, car insurance, and life insurance are a part of everyday life. Property Damage Liability — This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole. Insurance for Dummies Select the first letter of the word or term to locate a definition and brief description. When it comes to your auto coverage you will run into a lot of terms that describe the various parts of a policy. The purchase price and/or the car payments are just the most obvious of costs. Author’s Note: Leasing accounts for a hefty 25% of new-car transactions today, mainly because the monthly payments are much lower than they’d be for a purchase. Auto Insurance Glossary of Terms. Homeowners Insurance Glossary of Terms. Property And Casualty Insurance Glossary. These definitions do not alter or modify the terms of any insurance contract. Making a list of all your insurance policies makes sense to help you keep track and for your loved ones if the day comes that your life insurance policy is activated. The amount your business will need to pay before the insurance policy covers the remaining balance. Rotational force. © Copyright - EINSURANCE - All rights reserved by E-Insure Services, Inc. Creative Commons Attribution-No Derivative Works 3.0 United States License, http://www.EINSURANCE.com/creativecommons, Chartered Property and Casualty Underwriter, Directors’ and Officers’ Liability Insurance, Insurance Considerations for Domestic Partners, Independent Insurance Agents & Brokers of America. Other terms, conditions and exclusions apply. March 08, 2018 Understanding key health insurance terms. 1. Certain … Also know as a "dec page" or "dec sheet.". Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. • Accident: An event or occurrence which is unforeseen and unintended. Disclaimer: The products and services that appear on Insurance.com are offered by companies from which QuinStreet may receive compensation. Insurance companies can access your claims information when underwriting or rating a policy. *FREE* shipping on qualifying offers. 2. Permissions beyond the scope of this license may be available at http://www.EINSURANCE.com/creativecommons under terms and conditions which establish fair use and ethical business pratices in accoradance with EINSURANCE. Once you know the car insurance basics, you can get the appropriate insurance that fits your needs and budget. This glossary provides insurance terms definition and explanation commonly used in insurance business world. In February 2002, the Federal Government's Interdepartmental Committee on. A statement added to an insurance policy that alters, deletes or adds coverage, terms or provisions of the policy. Auto insurance policy periods begin and end at 12:01 am in the local time zone. Some states only record 75 percent of incidents on an average MVR. If you are going to get a car, understanding car insurance basics is vital. This is in contrast to a split limit policy that has separate limits for bodily injury per person, bodily injury per accident, and property damage per accident. A piece of paper that summarizes the most important pieces of information of a policy. But most folks don’t end up knowing if their lease deals are good or bad, and they typically can’t explain what they’re paying for or how their payments were […] PDF download: DEFINITIONS OF HEALTH INSURANCE TERMS. In the event of a total loss, the insurance company makes payment to the Loss Payee first. Liability for damages even though fault or negligence cannot be proven. Collision and Comprehensive - Collision coverage pays to repair or replace your car Collision coverage pays to repair or replace your car no matter who or what caused the accident. So, if your deductible was $2,500, you’d pay for half of the $5,000 worth of damage first, then insurance would cover the rest. Auto Insurance Terms (R – Z) Rental Reimbursement Coverage: Rental reimbursement provides rental car expenses if you have a claim that is covered under comprehensive or collision coverage. Insurance for Dummies [Hungelmann, Jack] on Amazon.com. Copyright © 2020 Insurance.com. Liability, as the word implies, pays for damages for which you are found liable. Every industry has its own jargon, and the property and casualty insurance business is no exception. An insured individual or a beneficiary who receives a loss payment from an insurer. Comprehensive pays to repair or replace your car if it's stolen or damaged as a result of a storm or other natural event. Please note that there is … Insurance For Dummies Cheat Sheet. Actual Cash Value. Commercial auto insurance Employment practices liability insurance Directors & officers insurance View all policies. Third-party Liability.This refers to the coverage provided by the insurance company to pay out liability claims against you. Knowing what they mean is vital to selecting the right coverage for your needs. Glossary of Insurance Terms That Are Good To Know Here is an insurance glossary or list of travel insurance terms that you need to know when searching for a policy. This includes property damage and inj… Claims history database created by ChoicePoint. The insurance agents are supposed to explain these terms to you and they will do that as well. Sample declaration page. On an auto insurance policy, a Loss Payee is the institution that financed the loan or lease of the vehicle. Not every traffic incident actually appears on your MVR. We've curated a list of P&C insurance terms and definitions - to help you better understand the often confusing legal language of insurance. Absolute Liability. Download it once and read it on your Kindle device, PC, phones or tablets. No insurance website could be complete without offering and index of insurance terms and definitions. Briefly learn about the four basic coverages included in a standard personal auto policy. 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. Understanding Car Insurance Policy For Dummies – Car insurance is a cover that is provided for all types of cars ranging from trucks, passenger cars and SUVs. According to the Insurance Information Institute, consumers spend an average of $866.31 on car insurance annually. If you feel like you need to take a foreign language course to "speak insurance" don't worry, you're not alone! An insurance professional who represents different insurance companies, is not an employee of any one of those companes, and earns commissions from policies sold. (2010). Deductible. Requirements regarding auto insurance vary state by state, but the following definitions can be helpful for understanding the basics when shopping for auto insurance: An insurance policy that helps protect company vehicles or vehicles used for work. Often expressed in the form $100/$300/$100, with the amounts referring to thousands of dollars. It can sometimes also cover your passengers and/or other types of expenses. This website does not include all of the products and services available nor all of the companies that offer them.950 Tower Ln, Suite 600, Foster City 94404, 950 Tower Ln, Suite 600, Foster City 94404. Combined single limit (CSL) auto insurance policies have a single amount for liability payment limits for both property damage and bodily injury. Compensation may impact where they appear, including the order in which they appear. Bodily Injury Liability — This covers costs associated with injuries and death that you or another driver causes while driving your car. Torque. Collision: If you’re in an automobile accident, regardless of who is at fault, collision insurance provides protection to replace or repair your vehicle, subject to a deductible. Insurance for Dummies - Kindle edition by Hungelmann, Jack. Ask Customer Service for assistance. But, you need to at least understand the basic auto insurance terms because they spell out what you are and aren't covered for in your policy. Bodily Injury Liability. Torque is measured in pounds/foot. This glossary provides business insurance definitions for terms you might encounter while researching policies for your business and maintaining existing coverage. This is an example of a typical declaration page, … To gain insight into your company’s insurance policy, it’s helpful to have a grasp of basic business insurance terms. The importance of having insurance for your vehicle is to act as a guarantee that in case the worst ever happens, you and your car will be covered/protected by the insurance company. The term "property insurance" includes many lines of available insurance. Record of moving violations and license status. Car servicing customer satisfaction survey results. Insurance Terms And Definitions. We've curated a list of advanced and basic insurance terms and their definitions to better help you understand the often confusing world of insurance. Split limit policies have three separate amounts for liability payment limits: one for bodily injury per person, one for bodily injury per accident, and one for property damage per accident, usually in that order. EINSURANCE Glossary by E-Insure Services, Inc. is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License. By Jack Hungelmann . Commercial Auto Insurance. One of the key decisions in deciding what car to buy is assessing how much all the other costs are that come with ownership. As a useful guide to insurance vocabulary, it will help you understand your coverage or benefits plan page. Comprehensive: In the event of hail damage or a tree limb falling on your car (risks not involving an automobile collision), this coverage insures you. Automobile Insurance Terminology. Exclusion A provision in an insurance policy that excludes and/or limits certain coverages. Collision Coverage. Car Insurance Terms & Definitions for Dummies Before taking any auto insurance for the first time, t is a good idea to get familiarized with the common insurance terms and definitions. Includes information such as date of loss, type of loss and amounts paid, and vehicle description. We’ve listed some common car terms and their meanings. Insurance plans can differ in which providers you can see and how much you have to pay. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of … , it will help you understand your coverage or benefits plan page page …... 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