Auto Insurance Terms
When searching for Auto Insurance you may realize a lot of unfamiliar terms being thrown around. If you don’t understand these words, you may leave your auto insurance provider in confusion. SkyBlue Insurance is here to assist you. Below we have listed some of the most commonly used auto insurance terms and their definitions that you should know browsing for Auto Insurance.
Actual Cash Value: An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss. For real property, this amount can be based on a determination of the fair market value of the property before and after the loss. For vehicles, this amount can be determined by local area private party sales and dealer quotations for comparable vehicles.
Anti-theft Device: A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums.
At-fault: The party who is legally liable for the damages in an accident.
Cancellation: The termination of insurance coverage during the policy period. Also see: Flat cancellation
Claim: A notice to an insurer that a loss may be covered.
Claim Adjuster: A person responsible for investigating and settling a claim.
Claimant: The first or third party. That is any person who asserts right of recovery.
Collision Deductive Waiver: This coverage waves your collision deductible if you are hit by a negligent uninsured motorist.
Comprehensive (auto): Provides coverage for any damage not caused by a collision.
Deductible: The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable.
Flat Cancellation: The cancellation of a policy as of its effective date, without any premium charge.
Liability (auto): Covers bodily injury and property damage to someone else.
Material Misrepresentation: The policyholder/applicant makes a false statement of any important fact on their application.
Misquote: An incorrect estimate of the insurance premium.
Policy Limit: The maximum amount a policy will pay.
Premium: The amount of money an insurance company charges for insurance coverage.
Quote: An estimate of the cost of insurance.
Surcharge: An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations.
Knowing these auto insurance terms will help you understand what’s going on when you apply. Hopefully having these terms defined for you will make the auto insurance application process a little less daunting.
Just so you know SkyBlue Insurance is an authorized representative for the top Auto Insurance carriers in the nation. Some of the carriers we represent include:
- Foremost Insurance
- National General Insurance
- Infinity Insurance
- The General
- Dairyland Insurance
- Progressive Insurance
- Titan Insurance
If you feel that you’re paying too much for insurance, or need to get a car insured, contact us at 1-800-771-7758. Our skilled agents can help you get great coverage for affordable rates. Or you can get your results instantly for free by requesting a Car Insurance Quote!