Understanding Auto Insurance Terms
Many people are perplexed by common auto insurance terms like 'cash value', 'claims adjuster', 'exclusions', 'deductible' 'indemnity' and more. If you are puzzled by these and other terms, filing an insurance claim in the event of an accident can quickly turn into a nightmare. Don't wait until you are in a crisis to understand the terms of your auto insurance policy. Examine the definitions below and become an informed consumer today.
Auto Insurance Terms
: 'Garage Location' - A garage location refers to the zip code in the area where your insured car is located when you are not driving it. This is usually the home or business premises of the owner.
Auto Insurance Terms
: 'Adjuster' - An adjuster is the person responsible for investigating any claim filed by you. After an accident you will need to file a claim with your insurance company. At this point you will be referred to a Car Insurance Adjuster who will work with you to settle claim in terms of your coverage. An adjuster is generally not the same as a car insurance agent.
Auto Insurance Terms: 'Actual Cash Value' - The actual cash value of an item is its current value at the time of an accident. This amount is basically the cost of replacing the item less any depreciation. Thus your actual cash value is the amount of money it would cost to replace the item. So, if your car is wrecked in an accident you will be paid out what your car is currently worth - not what you paid for it.
Auto Insurance Terms: 'Auto Insurance Fraud' - Fraud is a 'willfully deceptive act that seeks to obtain an advantage or gain' from your insurer. This means that you intentionally tried to cheat the company out of money that isn't due to you. If you pretend to have bodily injury after an accident but are actually quite healthy it would be considered fraud. Your policy can be voided if you are found out.
Auto Insurance Terms: 'Declarations' - Declarations are a list of specific details of your coverage. This may include the name of the insured driver is; what vehicle or physical property is included in the coverage, the dates and locations for the coverage; and how much coverage is included.
Auto Insurance Terms: 'Conditions' - Conditions are rights and duties of the insured car owner and the auto insurance company. Conditions are included so that both parties may be properly protected.
Auto Insurance Terms: 'Exclusions' - These are instances under which the policyholder is not insured. These may include losses when someone not insured by your car insurance causes and accident, losses caused deliberately, losses that occur at a time when premiums are unpaid or overdue and losses occurring due to war, civil unrest, rebellion, or revolution.
Auto Insurance Terms: 'Deductible' - When you take out an insurance policy you decide on a deductible. This is the amount of money you wish to pay out of your own pocket in the event of an accident. If your deductible is $800, this is the amount you are required to pay towards costs. The higher your insurance deductible is, the lower your insurance premiums are likely to be.
