Car and Auto Insurance Related Terms and Their Definitions
This is a good list of words to learn if you have never bought auto insurance before. If you have bought auto insurance before you might find another discount here.
* Accident Forgiveness: If you have not had an at-fault accident in the past five years insurance companies in most states will not add a surcharge to your premium after your next at-fault accident.
* Actual Cash Value: This is what your car or vehicle is worth after subtracting how much it has depreciated in value from the original cost due to age, wear, mileage and damage. It amounts to about to what you could sell you car for today which is less than what you paid for it new.
* Agent: An insurance Agent has been authorized by an insurance company represent the companies interests.
* Aggregate Limit: The highest amount that could be paid out on an insurance claim no matter how much property damage or bodily injury that resulted from the accident.
* Amendment: A change to an insurance policy that is usually done after the effective date.
* Anti-Lock Braking System: ABS is a computer controlled braking system that prevents the wheels from locking up and skidding.
* Anti-Theft Device: These devices include motion detectors, alarms, engine starter disablers and steering column restraints. They are designed to help prevent your car or vehicle from being stolen or vandalized and most insurance companies offer a discount on your insurance premium if you install them.
* Anti-Theft Recovery System: These devices include GPS systems and transmit a signal the police can track and use to find your stolen car or vehicle. Installing them may also qualify you for a discount on your insurance premium.
* At Fault: The person who is responsible for causing an accident and is legally liable for the damages.
* Auto Insurance: A type of insurance that compensates you for losses that result from car or vehicle accidents. It typically includes coverage against liability, property damage and bodily injury.
* Benefit: This is the pay out the insurance company sends to you or to the person you named as the beneficiary on your insurance policy if you file a successful insurance claim.
* Binder: This gives you temporary proof of coverage until the insurance company sends you your regular insurance policy paperwork and usually requires a premium payment.
* Bodily Injury: Any physical injury suffered by a person as a result of being in an auto accident.
* Bodily Injury Liability: A type of insurance that provides you coverage against financial loss if you are at fault in an auto accident for causing bodily injury to somebody by paying them compensation for it. It usually also pays for defense costs against legal actions and lawsuits. The maximum limit amount that can be paid out is set when you buy your insurance policy.
* Broker: A broker is authorized to represent the customers who buy auto insurance.
* Carrier: The insurance company you buy your insurance from.
* Certificate of Financial Responsibility: This is usually an SR-22 and is a document filed by the the insurance company that proves you have met the states minimum liability limits.
* Claim: An auto insurance claim is your request to be reimbursed for a loss or damage that is covered by your car insurance.
* Claim Adjuster: A person responsible for investigating and settling a claim.
* Collision Coverage: A type of car insurance that pays for auto repair or replacement costs if your car hits another vehicle or object. It usually pays up to the actual cash value of your car.
* Continuously Insured: The length of time you have maintained insurance on your vehicle with no lapse or interruption. This helps you qualify for discount insurance premium rates.
* Declarations page: The first page of your insurance policy that lists your name, insurance company, policy number, deductibles and coverages. It includes the effective and expiration dates of the insurance policy and a description of the insured vehicles.
* Deductible: The deductible is the amount that an insured person agrees to pay toward their own losses before the insurance company pays out on a claim. The higher the deductible you choose the lower your insurance premium will be.
* Depreciation: The steady decline in you vehicles actual cash value as the result of age, mileage, wear and tear.
* Driver Training Discount: If you take a defensive driver safety training course you might qualify for a discount on your insurance premium.
* Earned Premium: The part of your insurance that has actually been paid for. If you pay for six months of coverage then in four months there will be four months earned premium.
* Effective Date: The date the insurance coverage on you vehicle actually starts when you pay for it.
* Endorsements: Also know as riders, these are changes to the original insurance policy.
* Expiration Date: The date your insurance coverage stops unless you renew the policy.
* Gap Insurance: This pays you back the difference between what you owe on your auto loan or lease and the actual cash value of your vehicle after a serious accident or total loss. It is optional but highly recommended if you owe a lot on your car.
* Garage Location: This is simply the zip code area where you park your car at your primary residence when you are not driving it.
* Indemnity: The sum to be paid out in the event of a loss that puts the insured back to where there were before with no more and no less.
* Insurance Premium: The predetermined amount you pay to the insurance company to get the insurance coverage you agreed upon.
* Insurance Quote: An no obligation offer from an insurance company for insurance coverage based on the information you give them about your vehicle and how much coverage you want.
* Lapse in Coverage: This happens if you let your car insurance expire and have no insurance for any length of time and will not help you qualify for a discount.
* Liability: The legal responsibility incurred if you cause bodily injury to another person or their property in an accident to compensate them for it.
* Liability Insurance: This pays for damages you have to pay to someone else as a result of causing them bodily injury or property damage in an accident. Most states have a minimum liability coverage amount.
* Limits: The maximum amount your insurance company will pay out to you in the event of an accident or loss.
* Medical Payments Coverage: If you have an accident this pays the medical expenses for you and your passengers no matter who was at fault.
* Motor Vehicle Report: A record of your moving violations and accidents over the years. A good MVR means lower insurance premiums.
* Multi-car discount: Most insurance companies offer a discount if you insure more than one vehicle with them.
* No-Fault Insurance: A few states allow this type of insurance where the company pays out to the insured no matter who was at fault in the accident.
* Personal Injury Protection: PIP pays for your medical expenses and lost wages in the event of an accident no matter who was at fault.
* Underinsured Motorist Coverage: If you get into an accident with someone who does not have enough insurance coverage to meet the damages you suffered this will pay for your medical expenses and property damage.
* Underwriter: An insurance company representative who reviews the insurance policy you apply for and decides if it is acceptable by the company standards.
* Uninsured Motorist Coverage: This will pay for the damages and bodily injury you suffer if you get into an accident with someone who does not have any car insurance.
* Vehicle Identification Number: VIN is the 17-digit serial number of your vehicle located on the drivers door frame or dashboard.
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Keeping your business protected from external risks
You are prosperous and you feel like the world is at your feet. Yes, many of us want to believe we own the success and we stand behind it alone. But in reality, there are people standing behind our back that are involved in our rises and falls. These people are the employees. Therefore you need to think of them as a part of your team that was there to get you to the top of the world. You should know your staff needs a reward. But how could you possibly reward them? If your company takes care of more than two but less than 50 people, there is an insurance that works for you and your business. It is very valuable when people that run the business for you are proficient employees who are in charge of their duties. But no matter what happens in the companies, no matter how many mistakes one can make, because we are only human after all, the staff needs to feel like they are cared even when they fail, as it can happen to anyone. The “cream” off the top of the Policy Right before you head into the office of the insurance company and put your signature somewhere get yourself together and remind yourself why you are there. Make a list of questions you need to ask before you sign anything. Make sure all the answers satisfy you. It is preferable to show up with statistics about the staff you want to insure, gather all of the important information on them that is necessary to apply for the coverage. Remember to introduce the slightest details and help the insurer to collect all the fact as accurately as possible. There are certain discounts and special offers that the business insurance allows you to take advantage of. They are the following: 1. Medical assistance. The insurance will take care of all the events that would involve you or any member of your team getting hurt. 2. Tax-free options. All the co-workers have a possibility to economize some money on taxes and some special payments. 3. Low payments. If you are the owner of a small enterprise – small business insurance will cost you less than other policies would normally cost you if purchased separately. Therefore it always makes sense to shop around some more instead of jumping on the first opportunity you see. So now you know what it takes to show your employees you are willing to give them something in return for the work they do. By giving your employees a chance to feel protected and concerned about you are raising the company’s prestige and the desire of the employed to work better. There is nothing more valuable than a company that treats their workers will respect, love and care. There isn’t a better boss than the one that makes sure people who work for him are healthy and content. Business insurance is a good investment and a wise decision. Please use Internet sites to receive quotes and email the company you want to trust with any questions that may arise. Helpful insurance assistants will be at your service 24 hours a day.
Health Care Group Insurance Discounts
Medical insurance companies typically offer no discounts to the self-employed. Many people make the logical assumption that if they buy their family’s healthcare insurance through their company or buy as part of an association that they will get a lower rate. While this can be true at times, this isn’t often true.
Individuals will often pay more for a group medical care insurance policy when compared to what they would pay if they applied as an individual. You may be losing thousands of dollars per year if you have made the wrong decision in this area.
Many consumers are affected because of this misconception. This hurts those who are self employed. This raises the expenses for families who have the choice to buy a group healthcare policy from their job or a private plan on their own. Many people on COBRA could choose to buy a plan directly at a much lower price, but never get individual prices.
COBRA is just an employer-based health insurance policy offered by your former job. Since it’s a group policy and since you will probably have to pay all of the cost, COBRA is usually very expensive. It costs many consumers hundreds of unnecessary dollars more each and every month than the premiums of a similar family plan.
The premiums for a healthcare coverage plan is for the most part determined by the cost of medical claims of the people your insurance carrier associates with you. If you are placed in the group that is composed of 23-year olds, you will probably pay lower premiums than if you are connected with a group of 41-year olds,. On the other hand, if you are grouped with 21-year old women who have high blood pressure, you may pay more for your plan than if you are grouped with 42-year old individuals who have recently passed a health care underwriting process with high marks.
Often if you buy group health care insurance you will not be asked any health history questions and will be offered a medical insurance policy based only on your gender and age. This is good should you have pre-existing conditions. However, if you are in good healthcare, you will want to be grouped with those who have passed the carrier’s medical underwriting. Applying for a health coverage plan that asks health history questions is the only way to get into this group.
Group medical care care protection frequently costs more for this reason. A carrier will pay more claims for the group it wasn’t allowed to investigate.
Most people make the assumption that a group health insurance policy will cost less due to the fact that, buying in larger quantity results in a lower cost when it comes to most other things. Buying a two-year subscription usually cost less than buying two separate one year subscriptions.
One more reason people believe that group health care insurance is less expensive is that in many cases a place of employment will pay a portion of one’s healthcare care insurance premiums. This results in the employee seeing a dollar amount that is much less than what your job pays to the insurance company.
Since this is true, be certain that you are getting the most advantageous price and coverage by checking with all of the health insurance choices available to you. You might be eligible for a group plan at your place of employment with a portion paid by your employer. Perhaps you could get a similar deal from your spouse’s company. You may be able to find an individual health care insurance plan from a reputable insurance company that sells to individuals and families.
Be positive that you check out all of your alternatives before buying medical coverage. Supposing that employer-sponsored healthcare insurance is less expensive than an individual healthcare policy might cost you a bundle every year.