Every industry has its own unique and strange terminology. Auto insurance is no exception. But first, what exactly is auto insurance? By purchasing coverage, you agree to pay the auto insurance premium to the insurance company. In return, this company agrees to pay the covered expenses associated with a motor vehicle accident once the deduction has been satisfied under the policy.
There are different ways to customize your policy by specifying cover to cover several types of accidents and related issues.
Here are some of the most important car insurance definitions you need to know and information on how it can protect you if the unexpected happens.
Actual Surrender Value (ACV)
The value of the vehicle takes into account the age, mileage, make, model, and general condition of the vehicle.
recommendation
An estimate of the value of the vehicle or property, or the extent of the damage caused by the accident at the time of loss. It is generally carried out by a neutral evaluator.
Personal injury liability cover
Compensation for injury or death resulting from a covered accident for which you were responsible. It can also provide you with money for legal defense. Learn more about liability coverage.
Carrier
The company provides insurance coverage.
Certificate of Satisfaction
A form to sign when receiving an insured vehicle from the repair shop. Indicates your satisfaction with the repairs.
To claim
Request for payment according to the terms of the insurance policy. Learn more about complaints.
ad pages
A page of your policy - usually the first page - which contains basic information such as your name, address, description of the vehicle(s) insured, policy effective dates, amount of coverage, and premiums.
deductible
The part of the claim you pay. A higher deductible will lower your premiums but increase costs in the event of an accident. Learn more about Nationwide's Vanishing Deductible.
consent - acknowledgment
A change in your policy by modifying specific coverage. He can add or change the coverage, reduce or even remove the coverage, or the terms or conditions of the policy.
expiration date
The date your coverage ends. The new or renewal policy usually begins on this date.
fieldworker
An insurance liaison who works out of the office and conducts accident scene investigations, and damage inspections and arranges face-to-face meetings with policyholders.
Fiscal Responsibility Act
A law that requires vehicle owners and drivers to have enough money to compensate anyone who may be injured in an accident. Liability insurance is the most common way to meet this requirement.
compensation
Financial compensation for a loss to restore a person or entity to the financial position it had before the flop.
Guaranteed benefit
A right or relationship under a contract of insurance that will cause a person to suffer economic loss as a result of property damage or bodily injury.
Insurance ID Card
A card issued by your insurance company contains basic information about your policy.
insurance diploma
A rating you get from an insurance company is influenced by your credit history and other factors, which are used in some states to determine if they can write a policy for you.
rented vehicle
A car or truck is rented under a long-term contract or lease agreement. It still belongs to the company renting the car and is listed on the insurance policy as insured.
responsibility
Legal obligation or liability for any injury or damage to another person.
Limit
Maximum coverage under the insurance policy. Learn more about choosing the right coverage limit.
Vehicle Report (MVR)
A report from the Department of Vehicles shows accidents and violations on your driving record.
Error insurance
Pays your medical bills, lost wages, or other accident-related expenses, regardless of who is responsible for the accident. This only applies in states with error-free laws. Learn more about error insurance.
No renewal
When an insurance company decides not to renew a policy on its expiry date.
Injury protection
Reimburses medical care, lost wages, or other accident-related medical expenses, regardless of who caused the accident. Learn more.
excellent
The cost of coverage under the insurance policy. It can be paid in monthly, quarterly, semi-annual, or annual installments. Learn more about the factors that affect your premium.
Re-inspection
Review of the appraisal or appraisal performed by the agent to ensure that the work required in the appraisal or appraisal is performed by the body shop.
release
A legal document stating that all past, present, and future financial obligations resulting from an accident or incident have been fulfilled.
Replacement cost (RC)
Unlike the CAV, the amount it would actually cost to replace a damaged or destroyed vehicle.
risk
Indicates the probability of a particular loss.
total loss
The condition of a vehicle or other property that has been so badly damaged that repair costs will exceed its value.
This guide to the most commonly used auto insurance terms can help Understand exactly what you're getting from a potential car insurance policy. When you're ready, take a look at our car insurance policies or find an insurance agent near you.
