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. 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. A piece of paper that summarizes the most important pieces of information of a policy. 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. Comprehensive pays to repair or replace your car if it's stolen or damaged as a result of a storm or other natural event. It can sometimes also cover your passengers and/or other types of expenses. Copyright © 2020 Insurance.com. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of … Insurance companies can access your claims information when underwriting or rating a policy. By Jack Hungelmann . (2010). This includes property damage and inj… Auto insurance can be confusing! Auto Insurance Glossary of Terms. Briefly learn about the four basic coverages included in a standard personal auto policy. Insurance plans can differ in which providers you can see and how much you have to pay. Based on a work at www.EINSURANCE.com. Actual Cash Value. 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. 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. Rotational force. New terms will be added to the glossary over time. In the event of a total loss, the insurance company makes payment to the Loss Payee first. Also know as a "dec page" or "dec sheet.". 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. Property And Casualty Insurance Glossary. 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. 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. 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. Deductible. 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. Often expressed in the form $100/$300/$100, with the amounts referring to thousands of dollars. Every industry has its own jargon, and the property and casualty insurance business is no exception. Since the invention of the first car with an internal combustion hydrogen engine in 1807, automotive terminology has confused those not “in the know”. Knowing what they mean is vital to selecting the right coverage for your needs. Torque. Time period during which an insurance policy is in force. No insurance website could be complete without offering and index of insurance terms and definitions. Dictionary of Insurance Terms -A- • Absolute Liability: Liability for damages even though fault or negligence cannot be proven. An insured individual or a beneficiary who receives a loss payment from an insurer. Collision Coverage. When it comes to your auto coverage you will run into a lot of terms that describe the various parts of a policy. 2. 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. Exclusion A provision in an insurance policy that excludes and/or limits certain coverages. Includes information such as date of loss, type of loss and amounts paid, and vehicle description. We've curated a list of P&C insurance terms and definitions - to help you better understand the often confusing legal language of insurance. 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. EINSURANCE Glossary by E-Insure Services, Inc. is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License. A statement added to an insurance policy that alters, deletes or adds coverage, terms or provisions of the policy. Ask Customer Service for assistance. Insurance for Dummies - Kindle edition by Hungelmann, Jack. 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. For example, your insurance provider might pay 80% of your claim leaving you responsible for paying the remaining 20%. Nearly every state requires car owners to carry the following auto liability coverage: 1. Insurance for Dummies [Hungelmann, Jack] on Amazon.com. Glossary of Commercial Insurance Terms Commercial insurance is divided into two main categories: property insurance and casualty 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. Insurance For Dummies Cheat Sheet. 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 … Once you know the car insurance basics, you can get the appropriate insurance that fits your needs and budget. The purchase price and/or the car payments are just the most obvious of costs. www.bls.gov. Requirements regarding auto insurance vary state by state, but the following definitions can be helpful for understanding the basics when shopping for auto insurance: Please read your official policy for full details about coverages. Since the invention of the first car with an internal combustion hydrogen engine in 1807, automotive terminology has confused those not “in the know”. An insurance policy that helps protect company vehicles or vehicles used for work. 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? Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Torque is measured in pounds/foot. This glossary provides insurance terms definition and explanation commonly used in insurance business world. We’ve listed some common car terms and their meanings. Third-party Liability.This refers to the coverage provided by the insurance company to pay out liability claims against you. 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. Briefly learn about the four basic coverages included in a standard personal auto policy the letter! 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