Insurance Glossary

Expand Your Coverage Vocabulary

When shopping for car insurance, it is a whole lot easier if you have an in-depth understanding of the industry lingo. Learn what certain terms mean so you can make an educated purchasing decision.

Accident Forgiveness - Some insurers have begun offering this incentive to qualified policyholders. Basically, a provider won't factor in an accident when determining what your premiums will be. This is often extended to current policyholders as well as prospective buyers looking to switch to a new plan. While this is a nice perk, it doesn't clear your history of any prior incidents. If you switch to a new company that doesn't offer this incentive, they may decide to factor the accident into your new rates.

Actual Cash Value - This is calculated by taking the replacement cost of your car or truck and subtracting any depreciation to determine how much you will be compensated for if your claim is approved.

Bodily Injury Liability Coverage - Although it may not be required by law in some states, this protection should still be considered mandatory if you consider yourself a responsible driver. This covers you and others who are injured in an accident that you cause. You owe it to yourself, your passengers and fellow citizen drivers to be adequately protected with this type of essential add-on at all times on the road.

Deductible - This figure is shown in a dollar amount and is the amount you have to pay before your benefits will kick in. The higher the deductible, the lower your premiums will typically be and vice versa.

Insurance Terms

Insured - The individual who is covered by a current policy - it should be you at all times!

Premium - This is the amount you pay on an annual, bi-annual, quarterly or monthly basis for the policy you choose. We work hard to partner with companies that offer the lowest premiums so you can enjoy essential protection while saving money There are tons of things that can affect your premium, such as vehicle type, your driving history and where you live.

Quote - This is basically an estimate of what you will pay for a prospective plan. Comparing quotes is the easiest way to save money because you can choose an option that meets your needs while not exceeding a predetermined maximum amount you are willing to spend.

Rental Reimbursement - This convenient add-on will look after the costs to rent a car while yours is being repaired. It may not seem desirable to add more than essential protection to your plan, but this is invaluable if you ever have to have your vehicle repaired.

Underwriting - This occurs once the insurer accepts your application for coverage and determines if you indeed qualify for the rate they quoted originally. Remember that the insurer has final say if you are approved for a policy or not, and this will be determined in the underwriting stage. If there are any rate adjustments that need to be made, this is when those would occur.

Uninsured motorist coverage - This is another add-on you do not want to ignore! It compensates you for damages caused by other drivers that are uninsured. Also consider underinsured motorist protection, which is just as important considering the number of motorists that are under or uninsured on the roads today.

Do you still have some questions? Visit our frequently asked questions section or contact us at any time.

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