Glossary of Terms (Part 1)
January 20th, 2008
If you feel like you need to take a foreign language course to “speak insurance” don’t worry, you’re not alone! 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. Here is a translation of some basic insurance lingo:
25/50/15, 100/300/100, etc. - You will see three numbers when you are buying liability coverage. They represent (in the $ thousands) your liability limits for per person bodily injury, bodily injury for all persons injured in any one accident and property damage liability. Each state requires its own mandatory minimums.
Automobile Liability Insurance - Protection in case others hold you legally responsible for bodily injury and/or damage to property losses incurred as the result of a motor vehicle accident. In other words, coverage in case you cause an accident where there is either physical or property damage to other people. This is a general term that covers bodily injury (BI) liability and property damage (PD) liability.
Source: autoinsuranceadvocate.net
Types of Car Insurance (Part 2)
January 17th, 2008
Personal Injury Protection (No-fault) - Many states require that you carry this type of insurance. This coverage pays benefits for the cost of injuries to you or your passengers resulting from an automobile accident regardless of who was at fault in the accident. It also applies to you and relatives living in your household who are injured in other automobiles or who are struck by a vehicle while walking. The main benefit of this coverage is that in an accident each driver’s expenses are paid by his/her own insurance without Read the rest of this entry »
What’s the Difference Between Cancellation and Renewal?
January 15th, 2008
Cancellation and non-renewal may seem like they have the same affect on you, but they are very different things. Cancellation is when the insurance company stops a policy before the end of its term. Non-renewal is when the company decides it will not allow you to continue your policy to a new term. The affects on your future insurance companies is not allowed to cancel a policy that has been in force for more than 60 days except:
Types of Car Insurance (Part 1)
January 15th, 2008
There are many different kinds of auto insurance coverage available. While some are essential, some are not and you can save money by only paying for the insurance coverage required by your state. Many sites offer a resource center so that you can inform yourself about auto insurance. Being aware of the various kinds of auto insurance is the first step in making sure that you and your assets are protected, but that you’re not carrying more coverage than you really need. Common types of insurance coverage include:
Bodily Injury Liability - Pays your legal defense costs and claims against you if your car injures or kills someone. This protection covers you, family members living with you and others driving with your permission.
Property Damage Liability - Pays your legal defense costs and claims against you if your car damages someone else’s property. This coverage does not cover your property, including your auto.
Coverage Levels
January 13th, 2008
by: Djai Tanji
Vehicle insurance which is also known as car insurance, auto insurance, or motor insurance is obtained for vehicles to be used to cover and in providing protection against losses that has resulted from traffic accidents and against legal responsibility that could be acquired in an accident or disaster. Different policies state the incidents under which each item is covered. Like for instance, a car can be independently insured against fire and accident damage or against theft. A vehicle insurance covers all or some of the insured party, the insured vehicle and the third parties which, is the car and people.
Glossary of Terms (Part 6)
January 10th, 2008
SR-22 - A document required by the court for individuals convicted of certain types of traffic violations that shows proof of financial responsibility.
Third party - In an insurance contract, a third party is anyone other than the policyholder and the family members covered under the insurance policy. The policyholder is the first party. The insurance company is the second party in the contract. Anyone else is a third party.
Glossary of Terms (Part 5)
January 5th, 2008
Preferred Provider Organization (PPO) - In 1991, Colorado enacted a statute that allows insurance companies to offer a “PPO” option. That means for a reduced rate, the consumer agrees to use a specific PPO for medical treatment for injuries suffered in auto accidents. This is an option only. Consumers can save up to 25-percent on the medical portion of their auto insurance premium.
Property Damage Liability (PD) - This coverage is for when you damage someone else’s property with your vehicle. Usually it’s someone’s car, but it includes property like buildings, utility poles and garage doors. This coverage is required in Colorado, New Mexico, Utah and Wyoming. The mandatory minimum limit is $50,000.