David Livingston owns an insurance business that deals primarily in life insurance. If you would like to get the most competitive term life insurance rates or to find out about the term life insurance quotes, visit his site today.
Posts Tagged ‘Terms’
Auto Insurance Terms – A Layman’s Guide
Auto Insurance Terms
A Laymanâs Guide
Auto insurance score: Like a credit score, this score is based on information found in a consumer’s credit file. Insurance companies consider auto insurance scores when pricing policies. Having black marks on your credit report could really bump up your auto insurance costs.
Binder: A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
Bodily injury liability: The part of an auto insurance policy that pays for injuries you may cause another driver or pedestrian. It includes medical expenses and loss of wages.
Collision: The part of an auto insurance policy that pays to get your car repaired after a collision with another vehicle or an object, such as a fire hydrant or utility pole. It is collision insurance that will get your insurance company to seek out another driver’s insurance company to pay for repairs if they were at fault. A deductible amount will apply.
Comprehensive: This part of an auto insurance policy covers damages to your car caused by something other than a crash: a vandal breaks in, a tree falls on it or floodwaters engulf it. A deductible amount will apply.
Declarations page: The front page of an auto insurance policy listing the name of your insurance company, your policy number, your coverage, the cost of the coverage and your deductibles. This page also lists the vehicles insured on the policy as well as vehicle identification numbers (VIN).
Factors that affect your auto insurance include:
â¢
Age
â¢
The type of car you drive
â¢
Marital status
â¢
Where you live: an urban or rural area
â¢
Driving record
 Â
Deductible amount: The amount of money a policyholder must pay before an insurance company steps in and pays the rest. Deductible amounts range from 0 to ,000. The higher your deductible, the lower your insurance premium or cost. A higher deductible also means you’ll have to pay more money out of your own pocket if an accident, theft or another covered incident should occur.
Discount: A reduction in the cost of your auto insurance premium. Insurance companies offer discounts for everything from a teenage driver’s good grades to a car’s safety equipment, including airbags, anti-lock brake system and a security alarm.
Emergency road service: This part of an auto insurance policy pays for the cost of having your car towed after it breaks down.
Exclusion: A provision in an insurance policy that denies coverage for certain losses, locations, people and properties.
Gap insurance: A type of insurance offered to auto lease and loan customers that owe more on a car than it’s worth. Gap insurance pays the difference between what you owe and the actual cash value of a vehicle in the event the car is stolen or destroyed.
High-risk driver: If you have accidents or tickets on your driving record, many insurance companies will classify you as a high-risk driver and charge you more for insurance.
Liability insurance: This part of an auto insurance policy covers the injuries and damage you cause to other drivers and their vehicles when you are at fault in an accident. If you are taken to court, liability coverage will apply to your legal costs. Most states require drivers to carry liability coverage. The amount of coverage varies by state.
Limits: The maximum amount of benefits your insurer will pay for a loss as designated in your insurance policy.
Medical payments coverage: This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. It is also known as personal injury protection (PIP).
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, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Washington, DC..
Personal property liability: The part of an auto insurance policy that pays for damages you may cause to another’s car or property.
Personal injury protection (PIP): This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. PIP is also known as medical payments coverage.
Premium: The amount charged for an insurance policy. A premium is based on the type and amount of coverage you choose. Other factors affecting your insurance premium include your age, marital status, your driving and credit records, the type of car you drive and whether you live in an urban or rural area. Premiums vary by insurance company.
Rental reimbursement: This part of a policy pays for the cost of a similar-sized rental car when your car is in a repair shop for covered damage.
Surcharge: A charge added to your auto policy premium after a traffic violation or an accident in which you were at fault.
Underinsured driver: This part of an auto insurance policy covers injuries to you caused by a driver without enough insurance to pay for your medical expenses. Some states include damages to your car in this coverage.
Uninsured driver or motorist: This part of an auto insurance policy covers injuries to you caused by a driver without insurance. Most states require drivers to carry uninsured motorist coverage. Some states include damages to your car in this coverage.
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Please visit my website for further comment and updates re. Auto Insurance Terms
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The author is a former insurance agent and financial consultant who has written a number of articles on how to get discount auto insurance.
Term Insurance – Term Insurance And Terms You Need To Understand
Insurance companies charge you premiums based on your health and age. When you buy life insurance to cover you for only a set number of years, the insurance companies offer you different types of premium options to pay for your coverage. This article explains some key words that insurance companies use to characterize these premium types. Understanding them is critical to recognizing the possible cost and length of your coverage.
Life insurance companies expect you to live a certain number of years, statistically. The longer your coverage even if you maintain your health, the greater is your risk of dying. Also the longer you hold coverage, the greater is your chance of developing health problems that will also increase your risk of dying. Recognizing this, insurance companies contrive different premium types to protect their liability and, perhaps, lower your current premiums temporarily.- Term Insuracne
When you buy ‘term insurance’ you’re paying for ‘pure’ insurance. There’s no savings or cash value component associated with the policy. Its premiums (i.e. the payment you make to own the policy) covers only the risk of death and payment of the ‘death benefit’ during your coverage time.- Term Insuracne
Many insurance companies offer level premium term insurance. Premiums may remain level (i.e. constant) for a period of 5, 10, 15, 20, 25 or even 30 years. These policies are inexpensive and can provide relatively long term coverage.
Some level premium term policies contain a guarantee of level premiums; others don’t. Without a guarantee, the insurance company can surprise you by raising your premiums (the amount you must pay to keep the policy in force), even during the time you expected your premiums to remain level. Make sure you understand the terms of your policy. read more http://www.terminsurance.pannipa.com/2009/09/term-insurance-and-terms-you-need-to-understand/
A brief video on Term Insurance, and how it works
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Term Insurance and Terms You Need to Understand
Insurance companies charge you premiums based on your health and age. When you buy life insurance to cover you for only a set number of years, the insurance companies offer you different types of premium options to pay for your coverage. This article explains some key words that insurance companies use to characterize these premium types. Understanding them is critical to recognizing the possible cost and length of your coverage.
Life insurance companies expect you to live a certain number of years, statistically. The longer your coverage even if you maintain your health, the greater is your risk of dying. Also the longer you hold coverage, the greater is your chance of developing health problems that will also increase your risk of dying. Recognizing this, insurance companies contrive different premium types to protect their liability and, perhaps, lower your current premiums temporarily.
When you buy ‘term insurance’ you’re paying for ‘pure’ insurance. There’s no savings or cash value component associated with the policy. Its premiums (i.e. the payment you make to own the policy) covers only the risk of death and payment of the ‘death benefit’ during your coverage time.
Many insurance companies offer level premium term insurance. Premiums may remain level (i.e. constant) for a period of 5, 10, 15, 20, 25 or even 30 years. These policies are inexpensive and can provide relatively long term coverage.
Some level premium term policies contain a guarantee of level premiums; others don’t. Without a guarantee, the insurance company can surprise you by raising your premiums (the amount you must pay to keep the policy in force), even during the time you expected your premiums to remain level. Make sure you understand the terms of your policy.
When considering which type of policy to use, you’ll need to familiarize yourself with all the terms and conditions that the policies present. When you purchase insurance – life as well as health or disability – you’re obviously interested in maintaining it until you feel that you don’t need it anymore.
You should understand some key terms pertaining to insurance that have a direct bearing on maintaining your police and reaping its proceeds. Four terms of particular importance to them are:
* conditionally renewable,
* renewable,
* guaranteed renewable and
* non-cancellable.
A conditionally renewable policy means that you can renew your policy but subject to the insurer’s conditions. Here, the insurer can cancel your policy if you’ve made too many claims or, for some reason, appear to be a higher risk. Under such a condition an insurer can drop you when you need the coverage most. As an example, if you paid on a conditionally renewable health insurance policy for 20 years without filing many claims, your insurer can drop you when you turn 60 or 70 — just when you’re likely to need more medical services.
A renewable policy allows the beneficiary to extend the coverage term for a set period of time without having to re-qualify for coverage. It’s contingent on premium payments being up to date. A life insurance contract having a renewable term clause would be beneficial since future health circumstances are unpredictable. Although the initial premiums are likely to be higher than those of a life insurance contract without a renewable term clause, buying this type of insurance is often in the beneficiary’s best interest.
A guaranteed renewable policy prevents the insurer from unilaterally dropping you as long as you keep paying your premiums on time. Virtually all health insurance policies written today are guaranteed renewable. While re-insurability is guaranteed, premiums can rise based on the filing of a claim, injury, or other factor that could increase the risk of future claims. Premiums can also be raised on an entire class of insured people during the life of a guaranteed renewable policy for health, life or disability insurance. Most insurers offer both guaranteed renewable policies and non-cancellable policies. If premiums are similar for both a guaranteed and a non-cancellable policy, the non-cancellable policy will offer the double guarantee of re-insurability and locked-in premiums.
Shane Flait writes and consults on financial, legal, tax, and retirement issues. He gives you workable strategies to accomplish your goals. Get his FREE report on Managing Your Retirement =>
http://www.easyretirementknowhow.com/FreeReportandSignUp.htm ,
You can contact him at contact@easyretirementknowhow.com
Let’s say there’s a family, and there’s three different prescriptions for different medications within the family. Let’s say the Dad is paying for health insurance. Do you just pay for health insurance once, when you register for it? Do you pay $20 monthly? Does the price you pay go up when you add more medications? I’m confused.
One question that is daunting most people related to life insurance coverage is; how long do you need the life insurance coverage. Most people believe that they are going to need the life insurance cover at least through retirement age. If you are buying a life insurance at age 35, a 30 year term would be a minimum number that most individuals would like to get. There are some people who have different opinion to this calculation.IWhile buying a life insurance policy the questions that arise are that of the duration and the cost of the policy. Well, there is nothing to wonder. Decide the number of years left for your retirement and that should be the least duration covered by your policy. If you are buying a life insurance at age 35, a 30 year term would be a minimum number of years for the policy coverage.IThink of buying a life insurance policy and you need to decide how many years it should be for. Ideally people think of the coverage term at least through retirement age. Another option is to take the coverage till the insured die. A term of 30 to 35 years is relevant to people who are middle aged. You can also buy the policy for different benefits according to your needs.
It is always recommended to go longer with the term of the term life insurance, because you could always walk away or drop the coverage. Longer type term, typically, a 20 or 30 year term is most suitable. Term life insurance is also a better bet because it is an affordable life insurance and almost all can afford it. Affordable life insurance may not be affordable if you are not in the good health, so keep yourself in good health all the time.ITerm life insurance is a good option for people who want to buy affordable life insurance and for a longer period of time say 20 to 30 years. Here the cost of the policy is less and it is an affordable life insurance which suits everyone’d budget. But the same policy can cost you more if you are not physically and mentally healthy and are suffering from any chronic ailment.Iif you are in your late twenties or early thirties then it is advisable to take a policy for a longer period of time say 30 to 35 years. In this case the cost of the policy becomes less and the benefit attached are also more. Affordable life insurance policies are good options and come with many benefits.
With all the volatility in the financial market, one question that is creeping up is; how can one be confident about the life insurance company. This is a very interesting question and has a lot to do with the market downs. In the past, for example, in the 1980s, there were many failures in the life insurance sector. Many life insurance companies plummeted and people just lost their faith in life insurance. The situation was worse and people were looking for affordable life insurance with financially strong life insurance companies.IWith the current situation of the financial market and its slow recovery from recession people are becoming more skeptic to invest in life insurance. 1980s also marked a slowdown in the financial condition of the market and there were many failures in the life insurance sector. People no longer invest without research and analysis of what will happen to their invested money. This is the reason why you should find out everything about the financial strength of the company you are investing with.IThe financial market being hit by recession and the subsequent failures in investment have had an alarming impact on people. Everybody wants to invest only in secure plans and with reputed companies so that their hard earned money does not go waste. Situation as todays is similar to that of the 1980s when the financial meltdown had discouraged people to invest and especially in life insurance. Now most of the companies have back up plans so that they can compensate their investors with equal benefits in events of financial market f crisis. This is the plus point of investing judiciously with financially strong and reputed companies.
Now that the market is reviving, most people want to know if the life insurance company, from whom they are buying the life insurance, is going to hold on for the years to come. You need to make sure that the company is of good reputation and will give you the good life insurance rates with total confidence about their very existence. Life insurance companies that are A rated or better are always a good bet if you want to be totally sure of the company’s fiscal position. Good life insurance companies are:
o AIG
o Prudential
IThe financial market is reviving but still people want to know that the company they are investing with will hold on for the coming years. You also need to know that the company has a strong financial presence in the field, is reputed and will give you good life insurance rates with total confidence about their very existence. ‘A’ rated life insurance companies are better options to invest with for better fiscal position.IIn the face of reviving financial market people want to know that the company they are going to invest in will be stable for years to come. Select a company that has a strong financial base and is well reputed. Life insurance companies that offer good life insurance rates are good options to invest with after you are confident about their fiscal position. There are ‘A’ rated life insurance companies who are always good bet and offers good investment options.
You will come across many life insurance terms when you are researching or buying a life insurance policy. These terms often form the basics of the life insurance buying process. The terms such as life insurance rates, riders, and others can be very confusing if you don’t know the basics of life insurance. Imagine a life insurance agent approaches you and starts explaining the life insurance rates and other terms associated with life insurance. If you are not aware of the terms, you will be completely lost.IWhen you are buying life insurance policy you should have an idea about the basic terms related to life insurance. Terms such as rates, riders are important and play a vital role in deciding the benefits of your policy. Asking your insurance agent or browsing the net will give you hands on knowledge about these terms.IIf you try to find out about life insurance terms browsing the net or referring to your agent are good options. The policies that you wish to buy have many such terms in them like insurance rates, riders etc. Without knowing the meaning of these terms you will not be able to understand the basic things about the life insurance policies. You may also lose on some benefit aspect if you do not have detailed knowledge as to where you have made the investment and how the returns are going to be.
Three of the most important terms in the life insurance domain are coverage, face amount, or death benefit. All these three terms often mean the same and are almost synonymous to each other. Coverage, face amount, or death benefit is the amount of a check that will be payable to your beneficiaries when you pass away or when you die. The most important aspect of the life insurance is to get the right face amount, which is the amount of coverage that you will be buying.IThree most important terms in life insurance domain are coverage, face amount and death benefit. They are relevant to each other and form integral parts of your policy. Coverage, face amount, or death benefit is the amount that will be payable to the beneficiaries after the policyholder passes away. Getting the right amount or face value is important as this money should be adequate to the needs of the beneficiaries after the policy holder’s death.ICoverage, face amount, or death benefit are the three important terms in life insurance sector. The meaning of these terms are similar and refer to the claim amount or the face value of the policy that has to be paid to the beneficiaries at the demise of the insured person or the policy holder. The face value of the insurance policy should be decided very carefully as this money is going to be very crucial to meet the needs of your family after you die.
Sometimes the words ‘in force’ are very often used in the life insurance sector. You may wonder what does ‘in force’ mean. Well, it simply means that the life insurance policy that you have taken is active and is ready to pay. Also, it means that the life insurance policy is in good standing and the life insurance is ready to pay the claim in the event of your death. If you have paid an annual premium, the life insurance policy will be in force for one year. In addition, you may also get a thirty day grace period.ITerms like ‘in force’ is very often used in the life insurance sector. This means that the life insurance policy that you have taken is active and is ready to pay. This also indicates that the life insurance policy is in good standing and the insurance company will pay the face value in the event of your death. If your premium mode is annual then for that year your life insurance policy is active with thirty day grace period.IYou must also be aware that as you pay the premium you should make note that your policy is activated that is if you are have paid an annual premium then make sure that your policy is active for that year with a thirty day grace period. This also suggests that the life insurance policy is in good standing and in the event of your death will pay the death claim.
Many people get confused between the three terms— Insured, policy owner, and beneficiary. The insured is the person’s life upon which the life insurance policy is based. If the insured is living then the policy is not paid; however, when the insured is dead, and if the policy was in force on the date of death, then the coverage amount is paid to the beneficiaries. The policy owner is generally the insured, but not always. Sometimes, a different party would be the owner of the policy. Make sure you know these terms properly before buying a life insurance policy.IIn terms of life insurance policy the terms insured stands for the persond whose life has been insured; policy owner stands for the person who has bought the policy (the policy owner can be the insured person himself); and the beneficiary who gets the claim amount or the face value of the policy after the death of the insured. Examples of the policy owner being different from the insured is the husband insuring his wife in which case the husband is the policy owner but the wife is the insured.IDo not be confused with terms like Insured, Policy owner and Beneficiary. Insured refers to the person whose life is covered. Policy owner is the person who pays the premiums and has bought the policy. The policy owner can be the person insured or he might have bought the policy for someone else. Beneficiary is the person who gets the death claim after the death of the insured.
Auto Insurance Terms
A Layman’s Guide
Auto insurance score: Like a credit score, this score is based on information found in a consumer’s credit file. Insurance companies consider auto insurance scores when pricing policies. Having black marks on your credit report could really bump up your auto insurance costs.
Binder: A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
Bodily injury liability: The part of an auto insurance policy that pays for injuries you may cause another driver or pedestrian. It includes medical expenses and loss of wages.
Collision: The part of an auto insurance policy that pays to get your car repaired after a collision with another vehicle or an object, such as a fire hydrant or utility pole. It is collision insurance that will get your insurance company to seek out another driver’s insurance company to pay for repairs if they were at fault. A deductible amount will apply.
Comprehensive: This part of an auto insurance policy covers damages to your car caused by something other than a crash: a vandal breaks in, a tree falls on it or floodwaters engulf it. A deductible amount will apply.
Declarations page: The front page of an auto insurance policy listing the name of your insurance company, your policy number, your coverage, the cost of the coverage and your deductibles. This page also lists the vehicles insured on the policy as well as vehicle identification numbers (VIN).
Factors that affect your auto insurance include:
•
Age
•
The type of car you drive
•
Marital status
•
Where you live: an urban or rural area
•
Driving record
Deductible amount: The amount of money a policyholder must pay before an insurance company steps in and pays the rest. Deductible amounts range from $100 to $1,000. The higher your deductible, the lower your insurance premium or cost. A higher deductible also means you’ll have to pay more money out of your own pocket if an accident, theft or another covered incident should occur.
Discount: A reduction in the cost of your auto insurance premium. Insurance companies offer discounts for everything from a teenage driver’s good grades to a car’s safety equipment, including airbags, anti-lock brake system and a security alarm.
Emergency road service: This part of an auto insurance policy pays for the cost of having your car towed after it breaks down.
Exclusion: A provision in an insurance policy that denies coverage for certain losses, locations, people and properties.
Gap insurance: A type of insurance offered to auto lease and loan customers that owe more on a car than it’s worth. Gap insurance pays the difference between what you owe and the actual cash value of a vehicle in the event the car is stolen or destroyed.
High-risk driver: If you have accidents or tickets on your driving record, many insurance companies will classify you as a high-risk driver and charge you more for insurance.
Liability insurance: This part of an auto insurance policy covers the injuries and damage you cause to other drivers and their vehicles when you are at fault in an accident. If you are taken to court, liability coverage will apply to your legal costs. Most states require drivers to carry liability coverage. The amount of coverage varies by state.
Limits: The maximum amount of benefits your insurer will pay for a loss as designated in your insurance policy.
Medical payments coverage: This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. It is also known as personal injury protection (PIP).
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, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Washington, DC..
Personal property liability: The part of an auto insurance policy that pays for damages you may cause to another’s car or property.
Personal injury protection (PIP): This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. PIP is also known as medical payments coverage.
Premium: The amount charged for an insurance policy. A premium is based on the type and amount of coverage you choose. Other factors affecting your insurance premium include your age, marital status, your driving and credit records, the type of car you drive and whether you live in an urban or rural area. Premiums vary by insurance company.
Rental reimbursement: This part of a policy pays for the cost of a similar-sized rental car when your car is in a repair shop for covered damage.
Surcharge: A charge added to your auto policy premium after a traffic violation or an accident in which you were at fault.
Underinsured driver: This part of an auto insurance policy covers injuries to you caused by a driver without enough insurance to pay for your medical expenses. Some states include damages to your car in this coverage.
Uninsured driver or motorist: This part of an auto insurance policy covers injuries to you caused by a driver without insurance. Most states require drivers to carry uninsured motorist coverage. Some states include damages to your car in this coverage.
Please visit my website for further comment and updates re. Auto Insurance Terms
The author is a former insurance agent and financial consultant who has written a number of articles on how to get discount auto insurance.
Auto Insurance Terms
A Layman’s Guide
Auto insurance score: Like a credit score, this score is based on information found in a consumer’s credit file. Insurance companies consider auto insurance scores when pricing policies. Having black marks on your credit report could really bump up your auto insurance costs.
Binder: A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
Bodily injury liability: The part of an auto insurance policy that pays for injuries you may cause another driver or pedestrian. It includes medical expenses and loss of wages.
Collision: The part of an auto insurance policy that pays to get your car repaired after a collision with another vehicle or an object, such as a fire hydrant or utility pole. It is collision insurance that will get your insurance company to seek out another driver’s insurance company to pay for repairs if they were at fault. A deductible amount will apply.
Comprehensive: This part of an auto insurance policy covers damages to your car caused by something other than a crash: a vandal breaks in, a tree falls on it or floodwaters engulf it. A deductible amount will apply.
Declarations page: The front page of an auto insurance policy listing the name of your insurance company, your policy number, your coverage, the cost of the coverage and your deductibles. This page also lists the vehicles insured on the policy as well as vehicle identification numbers (VIN).
Factors that affect your auto insurance include:
•
Age
•
The type of car you drive
•
Marital status
•
Where you live: an urban or rural area
•
Driving record
Deductible amount: The amount of money a policyholder must pay before an insurance company steps in and pays the rest. Deductible amounts range from $100 to $1,000. The higher your deductible, the lower your insurance premium or cost. A higher deductible also means you’ll have to pay more money out of your own pocket if an accident, theft or another covered incident should occur.
Discount: A reduction in the cost of your auto insurance premium. Insurance companies offer discounts for everything from a teenage driver’s good grades to a car’s safety equipment, including airbags, anti-lock brake system and a security alarm.
Emergency road service: This part of an auto insurance policy pays for the cost of having your car towed after it breaks down.
Exclusion: A provision in an insurance policy that denies coverage for certain losses, locations, people and properties.
Gap insurance: A type of insurance offered to auto lease and loan customers that owe more on a car than it’s worth. Gap insurance pays the difference between what you owe and the actual cash value of a vehicle in the event the car is stolen or destroyed.
High-risk driver: If you have accidents or tickets on your driving record, many insurance companies will classify you as a high-risk driver and charge you more for insurance.
Liability insurance: This part of an auto insurance policy covers the injuries and damage you cause to other drivers and their vehicles when you are at fault in an accident. If you are taken to court, liability coverage will apply to your legal costs. Most states require drivers to carry liability coverage. The amount of coverage varies by state.
Limits: The maximum amount of benefits your insurer will pay for a loss as designated in your insurance policy.
Medical payments coverage: This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. It is also known as personal injury protection (PIP).
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, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Washington, DC..
Personal property liability: The part of an auto insurance policy that pays for damages you may cause to another’s car or property.
Personal injury protection (PIP): This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. PIP is also known as medical payments coverage.
Premium: The amount charged for an insurance policy. A premium is based on the type and amount of coverage you choose. Other factors affecting your insurance premium include your age, marital status, your driving and credit records, the type of car you drive and whether you live in an urban or rural area. Premiums vary by insurance company.
Rental reimbursement: This part of a policy pays for the cost of a similar-sized rental car when your car is in a repair shop for covered damage.
Surcharge: A charge added to your auto policy premium after a traffic violation or an accident in which you were at fault.
Underinsured driver: This part of an auto insurance policy covers injuries to you caused by a driver without enough insurance to pay for your medical expenses. Some states include damages to your car in this coverage.
Uninsured driver or motorist: This part of an auto insurance policy covers injuries to you caused by a driver without insurance. Most states require drivers to carry uninsured motorist coverage. Some states include damages to your car in this coverage.
Please visit my website for further comment and updates re. Auto Insurance Terms
The author is a former insurance agent and financial consultant who has written a number of articles on how to get discount auto insurance.
Auto Insurance Terms
A Layman’s Guide
Auto insurance score: Like a credit score, this score is based on information found in a consumer’s credit file. Insurance companies consider auto insurance scores when pricing policies. Having black marks on your credit report could really bump up your auto insurance costs.
Binder: A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
Bodily injury liability: The part of an auto insurance policy that pays for injuries you may cause another driver or pedestrian. It includes medical expenses and loss of wages.
Collision: The part of an auto insurance policy that pays to get your car repaired after a collision with another vehicle or an object, such as a fire hydrant or utility pole. It is collision insurance that will get your insurance company to seek out another driver’s insurance company to pay for repairs if they were at fault. A deductible amount will apply.
Comprehensive: This part of an auto insurance policy covers damages to your car caused by something other than a crash: a vandal breaks in, a tree falls on it or floodwaters engulf it. A deductible amount will apply.
Declarations page: The front page of an auto insurance policy listing the name of your insurance company, your policy number, your coverage, the cost of the coverage and your deductibles. This page also lists the vehicles insured on the policy as well as vehicle identification numbers (VIN).
Factors that affect your auto insurance include:
•
Age
•
The type of car you drive
•
Marital status
•
Where you live: an urban or rural area
•
Driving record
Deductible amount: The amount of money a policyholder must pay before an insurance company steps in and pays the rest. Deductible amounts range from $100 to $1,000. The higher your deductible, the lower your insurance premium or cost. A higher deductible also means you’ll have to pay more money out of your own pocket if an accident, theft or another covered incident should occur.
Discount: A reduction in the cost of your auto insurance premium. Insurance companies offer discounts for everything from a teenage driver’s good grades to a car’s safety equipment, including airbags, anti-lock brake system and a security alarm.
Emergency road service: This part of an auto insurance policy pays for the cost of having your car towed after it breaks down.
Exclusion: A provision in an insurance policy that denies coverage for certain losses, locations, people and properties.
Gap insurance: A type of insurance offered to auto lease and loan customers that owe more on a car than it’s worth. Gap insurance pays the difference between what you owe and the actual cash value of a vehicle in the event the car is stolen or destroyed.
High-risk driver: If you have accidents or tickets on your driving record, many insurance companies will classify you as a high-risk driver and charge you more for insurance.
Liability insurance: This part of an auto insurance policy covers the injuries and damage you cause to other drivers and their vehicles when you are at fault in an accident. If you are taken to court, liability coverage will apply to your legal costs. Most states require drivers to carry liability coverage. The amount of coverage varies by state.
Limits: The maximum amount of benefits your insurer will pay for a loss as designated in your insurance policy.
Medical payments coverage: This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. It is also known as personal injury protection (PIP).
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, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Washington, DC..
Personal property liability: The part of an auto insurance policy that pays for damages you may cause to another’s car or property.
Personal injury protection (PIP): This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. PIP is also known as medical payments coverage.
Premium: The amount charged for an insurance policy. A premium is based on the type and amount of coverage you choose. Other factors affecting your insurance premium include your age, marital status, your driving and credit records, the type of car you drive and whether you live in an urban or rural area. Premiums vary by insurance company.
Rental reimbursement: This part of a policy pays for the cost of a similar-sized rental car when your car is in a repair shop for covered damage.
Surcharge: A charge added to your auto policy premium after a traffic violation or an accident in which you were at fault.
Underinsured driver: This part of an auto insurance policy covers injuries to you caused by a driver without enough insurance to pay for your medical expenses. Some states include damages to your car in this coverage.
Uninsured driver or motorist: This part of an auto insurance policy covers injuries to you caused by a driver without insurance. Most states require drivers to carry uninsured motorist coverage. Some states include damages to your car in this coverage.
Please visit my website for further comment and updates re. Auto Insurance Terms
The author is a former insurance agent and financial consultant who has written a number of articles on how to get discount auto insurance.
Auto Insurance Terms
A Layman’s Guide
Auto insurance score: Like a credit score, this score is based on information found in a consumer’s credit file. Insurance companies consider auto insurance scores when pricing policies. Having black marks on your credit report could really bump up your auto insurance costs.
Binder: A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
Bodily injury liability: The part of an auto insurance policy that pays for injuries you may cause another driver or pedestrian. It includes medical expenses and loss of wages.
Collision: The part of an auto insurance policy that pays to get your car repaired after a collision with another vehicle or an object, such as a fire hydrant or utility pole. It is collision insurance that will get your insurance company to seek out another driver’s insurance company to pay for repairs if they were at fault. A deductible amount will apply.
Comprehensive: This part of an auto insurance policy covers damages to your car caused by something other than a crash: a vandal breaks in, a tree falls on it or floodwaters engulf it. A deductible amount will apply.
Declarations page: The front page of an auto insurance policy listing the name of your insurance company, your policy number, your coverage, the cost of the coverage and your deductibles. This page also lists the vehicles insured on the policy as well as vehicle identification numbers (VIN).
Factors that affect your auto insurance include:
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Age
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The type of car you drive
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Marital status
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Where you live: an urban or rural area
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Driving record
Deductible amount: The amount of money a policyholder must pay before an insurance company steps in and pays the rest. Deductible amounts range from $100 to $1,000. The higher your deductible, the lower your insurance premium or cost. A higher deductible also means you’ll have to pay more money out of your own pocket if an accident, theft or another covered incident should occur.
Discount: A reduction in the cost of your auto insurance premium. Insurance companies offer discounts for everything from a teenage driver’s good grades to a car’s safety equipment, including airbags, anti-lock brake system and a security alarm.
Emergency road service: This part of an auto insurance policy pays for the cost of having your car towed after it breaks down.
Exclusion: A provision in an insurance policy that denies coverage for certain losses, locations, people and properties.
Gap insurance: A type of insurance offered to auto lease and loan customers that owe more on a car than it’s worth. Gap insurance pays the difference between what you owe and the actual cash value of a vehicle in the event the car is stolen or destroyed.
High-risk driver: If you have accidents or tickets on your driving record, many insurance companies will classify you as a high-risk driver and charge you more for insurance.
Liability insurance: This part of an auto insurance policy covers the injuries and damage you cause to other drivers and their vehicles when you are at fault in an accident. If you are taken to court, liability coverage will apply to your legal costs. Most states require drivers to carry liability coverage. The amount of coverage varies by state.
Limits: The maximum amount of benefits your insurer will pay for a loss as designated in your insurance policy.
Medical payments coverage: This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. It is also known as personal injury protection (PIP).
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, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Washington, DC..
Personal property liability: The part of an auto insurance policy that pays for damages you may cause to another’s car or property.
Personal injury protection (PIP): This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle after an accident. PIP is also known as medical payments coverage.
Premium: The amount charged for an insurance policy. A premium is based on the type and amount of coverage you choose. Other factors affecting your insurance premium include your age, marital status, your driving and credit records, the type of car you drive and whether you live in an urban or rural area. Premiums vary by insurance company.
Rental reimbursement: This part of a policy pays for the cost of a similar-sized rental car when your car is in a repair shop for covered damage.
Surcharge: A charge added to your auto policy premium after a traffic violation or an accident in which you were at fault.
Underinsured driver: This part of an auto insurance policy covers injuries to you caused by a driver without enough insurance to pay for your medical expenses. Some states include damages to your car in this coverage.
Uninsured driver or motorist: This part of an auto insurance policy covers injuries to you caused by a driver without insurance. Most states require drivers to carry uninsured motorist coverage. Some states include damages to your car in this coverage.
Please visit my website for further comment and updates re. Auto Insurance Terms
The author is a former insurance agent and financial consultant who has written a number of articles on how to get discount auto insurance.
Books in Barron’s pocket-sized Business Dictionaries series list thousands of specialized terms alphabetically and present concise definitions. The authors of books in this series are recognized authorities in their fields. Newly updated editions reflect new technologies, their business applications, and recent business trends. This book defines more than 4,200 insurance terms that should be understood by agents, brokers, actuaries, underwriters, personnel professionals dealing with employee-benefit programs, and consumers who need to understand the insurance policies they plan to buy. Terminology covers life, health, property, and casualty insurance, as well as retirement plans. This new, heavily updated edition has been expanded with approximately 200 new terms, and updatings of many other terms to reflect the current state of the insurance industry.
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(back cover) . . . helpful, particularly for employee benefit and re…
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