|
Auto Loans
Car Insurance Info:
-GAP
Insurance
-Getting
Into an Accident
-Auto Insurance Basics
-Interest Rates
-Auto Warranties
-Dealer Info
-Car
Loan Basics
-Rebates
-Saving $ While Driving
-Buying & Selling
-New
Car Info
-Used Auto
Info
Mortgages
Personal Loans
Debt Consolidation
Credit Reports
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
|
CAR INSURANCE TERMS
Below are some definitions of important
terms related to auto insurance coverage.
Auto Insurance Score
Based on your credit history; similar to
how a credit report score works. Auto insurance companies
use your auto insurance score as an indicator for
determining policy prices. If you have a poor
score, your cost is going to be higher.
Binder
A provisional contract that gives
verification of auto insurance coverage until a permanent policy can be
produced.
Bodily Injury Liability
Provides compensation for injuries caused
to another person. This includes medical costs
and any money lost as a result of loss of work.
Collision
Provides payment for car repairs as a result of
an accident. This also includes your insurance
company 'going after' another insurance company
to pay for your repairs if they are the party
at fault. Most insurance companies will have a
deductible for collision coverage.
Comprehensive
Provides compensation for damage that
occurs as a result of anything other than a
crash. This will include flood damage, break
in, etc.. Most insurance companies will have a
deductible for comprehensive coverage.
Deductible
Amount a policyholder
has to pay prior to having their insurance
company start paying for a claim. For example,
if you have a $500 deductible, and you have
$2000 worth of damage to your car, the
insurance company will pay $1500 and you pay
$500. There are all different amounts of
deductibles ranging from $100 - $1000.
Discount
A variable that will result in the cost of
your auto insurance to be lower. An alarm
system and/or good driving record are two
examples of items that will result in
discounts.
Emergency Road Service
An option in coverage that covers the cost
of a tow truck if your car breaks down.
Gap Insurance
This type of insurance if offered to
customers that owe more their auto loan than
what their vehicle is actually worth. Gap insurance
covers the difference between what you owe and
what the actual worth of your car is.
High-Risk Driver
Someone that has a large amount of
accidents and/or driving tickets. If you are
labeled high-risk, you are going to pay more
for your insurance.
Liability Insurance:
Compensates people that you are involved in
accident with when you are at fault. Covers the
court costs as well.
Limits
The maximum amount your carrier will pay
for a claim.
Medical Payments Coverage
Compensates medical costs and lost wages to
the insured or any other passengers in the
insured's vehicle after an accident. Also known
as
Personal Injury Protection.
No-Fault Insurance
This is when your insurance company will
pay for your injuries whether you are the
guilty party of an accident or not. Not all
states offer no-fault insurance. If you live in
a state with no-fault insurance regulations,
your auto insurance policy pays for your
injuries no matter who caused an accident.
No-fault insurance states include Florida,
Colorado Hawaii, Pennsylvania, Kentucky,
Kansas, Utah, Massachusetts, New Jersey,
Michigan, Minnesota, North Dakota, and New
York.
Personal Property Liability
Compensates for damages you cause to
another person's car or property.
Personal Injury Protection (PIP)
Compensates medical costs and lost wages to
the insured or any other passengers in the
insured's vehicle after an accident. Also known
as medical payments coverage.
Premium:
The cost of your auto insurance policy.
Rental Reimbursement
Compensation for the cost of a rental car
that is needed while your car is being repaired.
Surcharge
Additional charges to your auto insurance
policy that incur after your are at fault in an
accident.
More Glossary's Featured!
Auto Loan Glossary
Credit Card Glossary
|