TAGS
ACCIDENT INSURANCE: Insurance for car accidents.
ACTUAL CASH VALUE (ACV): This is one of the ways in which your Insurance comes up with the cash amount they will give you if your Auto or any items inside your auto at the time are non-repairable. For example, if your car is totaled they would give you a check for the value of your car but they would take away any wear and tear.
ADDITIONAL EQUIPMENT ENDORSEMENT: This is when you buy a car and add something extra to the car. An example would be Gold Rims or a really cool GPS system. ADDITIONAL EQUIPMENT ENDORSEMENT is coverage for these extra items bought.
BINDER: A temporary form of Auto Insurance given to the Driver right away to show Proof of Insurance before the “FULL AUTO INSURANCE POLICY” takes effect.
BODILY INJURY LIABILITY: Insurance Coverage that applies when you are at fault of someone getting hurt while driving. If you hurt someone while driving and they have injuries, then this type of Insurance would pay the injured person, not you. Sometimes they call this type of Insurance “Liability Insurance”.
COLLISION INSURANCE: This type of coverage would cover you if you hit another car and damaged your own car as well (even if it is your fault). It doesn’t cover injuries—ONLY THE CAR YOU DAMAGED!
COMPARATIVE NEGLIGENCE: This is when the fault of an Auto Accident is 50/50 or both you and the other driver is at fault.
COMPREHENSIVE COVERAGE: This type of coverage pays for things that might happen to your car other than a car accident. An example would be if your car was damaged by flood, fire or if it was stolen.
DEDUCTIBLE: The amount you must pay before your Car Insurance will give money to help you in an accident. For example, if your deductible is $500 and you’ve been in an accident in which your car repairs total $3,500, you must first pay the $500 deductible before the insurance pays for the $3,500 repairs.
DRIVE-OTHER-CAR ENDORSEMENT: This is when a person does not have his OWN CAR BUT HE DRIVES OTHER PEOPLE’S CARS A LOT. This type of insurance will insure him no matter if he does not own the actual Vehicle he is driving at the time.
LEMON LAWS: This is a law that means car makers must repair defective cars within a certain amount of time. If they don’t, they’ll have to refund the customer the price of the car (minus wear and tear or what has already been used).
LIABILITY INSURANCE: If you get in an accident and you cause damage to the other person’s Auto or cause them bodily injuries, then Liability Insurance will help pay for their medical costs and or damage to their car. This may also be called Property Damage Liability.
LIMITS: The amount the Insurance Company will pay benefits for in an accident. When you have GONE OVER THIS AMOUNT, this is when you are “MAXED OUT”.
LOAN GAP COVERAGE (GUARANTEED AUTO PROTECTION): If your Car gets totaled in an accident (no matter if you are leasing or paying a car note) you will still owe on the Loan if you do not get what is called “GUARANTEED AUTO PROTECTION” Coverage. Gap Insurance will pay the difference between the cost of your car now and the loan balance you owe from the Loan Company at the time of the accident.
MEDICAL PAYMENTS COVERAGE: This is a Coverage that pays for medical injuries because of a Car Accident NO MATTER WHOSE FAULT IT IS.
Personal Injury Protection (PIP): This is like Medical Payments Coverage except this will sometimes cover loss of work, medical and funeral costs due to an auto accident. Once again this protection pays REGARDLESS OF WHO CAUSED THE ACCIDENT.
PRODUCER: These are Auto Agents who sell Auto Insurance. They are also called Insurance Brokers.
RESCISSION: Let’s say you are late paying your Car Insurance and because of that they send you an Insurance Cancelation notice. You then go and pay your Car Insurance. When your Car Insurance gets your payment, they have to send a Rescission Notice which cancels the cancelation notice they sent you and then reinstates your Insurance Policy again.
SUBROGATION: This is how your insurance company gets their money back when they pay for any damages to your car caused by an accident. Your Car insurance goes after the Car Insurance of the Person who hit your car. This process is called Subrogation.
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