Insurance Coverage Levels & Claims

Coverage Levels & Claims By Bobbie Sage, About.com Guide Too many people don't have enough insurance coverage and they don't realize it until it is too late. Now is the time to learn about how much insurance coverage you need and what to do if you have to file a car insurance claim, home owners claim, life insurance claim or any other insurance claim. Making Sure You Are Covered Filing Insurance Claims Fair Treatment Getting the Most Out of Your Coverage Insurance Coverage and Claims Frequently Asked Questions Making Sure You Are Covered Do you have enough insurance coverage? Do you need extra coverage? Knowing the basics of insurance is great, but getting enough coverage for your unique insurance situation takes some learning. Once you have yourself covered appropriately, filing an insurance claim won't be such a headache. Car Insurance Recommended Coverages State Car Insurance Requirements Home Owners Insurance Limits Home Insurance Riders Life Insurance Needs Ads Community Assoc Press Books & more for condo, community, and homeowner assoc mgrs and boards www.caionline.org/bookstore.cfm Tata AIG™ Car Insurance Covers Glass, Fiber, Plastic Parts. Platinum Protection for Premium Car TataAIG-MotorInsurance.com HDFC ERGO™ Car Insurance Cashless Claim at 1600+ Garages! Zero Documentation. Buy Online. www.HDFCERGO.com/Car_Insurance Filing Insurance Claims Hopefully, you never have to file an insurance claim. But, if you do, you don't have to feel overwhelmed. If you learn about the right steps to take to file an insurance claim, you will be prepared to handle any bumps that may come during the claims process. 5 Steps to Filing Your Auto Insurance Claim 5 Steps to Preparing and Filing Your Homeowners Insurance Claim How to File a Life Insurance Claim Getting Your Health Insurance Claim Form Filed in 4 Steps Fair Treatment Have you filed an insurance claim and worried that maybe you were not being treated equally or fairly by your insurance company? How about when you purchase your policy? Is your agent giving you the best deal or is he only worried about his bottom line? It is important to be knowledgeable in your insurance so you can be treated fairly. Learn here more about what you can expect from your insurance company and agent and how to spot the warning signs of unfair treatment. How Your Credit Score Can Change Your Insurance Quote or Insurance Policy Making Sure Your Insurance Policy Covers What You Want Aftermarket Parts: Do You Have a Choice? What You Need to Know Before Changing Your Life Insurance Policy The Top Ten Insurance Myths You Need to Know! Your Insurance Agent's Commission eCourse: How to Know if Your Insurance Contract is Legal Getting the Most Out of Your Coverage How can you get the most from your insurance coverage? There are many ways including looking for ways you can save and get the same coverage and avoiding insurance you don't need or overlapping your insurance coverage. Learn here the best ways to get the most out of your insurance coverage. Choosing What Type of Agent You Want: Online or Local? Top Ways to Turn Your Current Car Insurance Into Cheap Car Insurance 11 Ways to Save on Your Homeowners Insurance Don't Buy Insurance You Don't Need How to Choose a Good Insurance Company Insurance Coverage and Claims Frequently Asked Questions I get some great insurance questions from my visitors. Here you can read what others are asking and get some great knowledge to help you make the best insurance choices and hopefully avoid the frequent mistakes a lot of people make when choosing their insurance coverage or filing their claimes. Should I Insure My Personal Possessions? How Much Homeowners Insurance do I Need? What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car? Is anyone who drives my car covered? What About Suicide...Can Life Insurance Still be Collected? How Much Life Insurance Do I Need? Which is Better for Me: Term or Cash Value Insurance? Should I Continue my Insurance with COBRA?

Understanding Your Home Owners Insurance Policy

Understanding Your Home Owners Insurance Policy Part I: Home Owners Insurance Property Protection By Bobbie Sage, About.com Guide See More About:home owners insuranceshopping for home owners insuranceinsurance policy terms Ads Community Assoc Press Books & more for condo, community, and homeowner assoc mgrs and boards www.caionline.org/bookstore.cfm For Life Insurance Policy Savings, Investments & Insurance at Jumpstart Insurance Consultants. jumpstart.co.in Car Insurance Comparison Instantly Find Great Value Policies With Amazing Offer & Save 55% More! Car-Insurance.PolicyBazaar.com Personal Insurance Ads Insurance Discount Auto Insurance Life Insurance Policy House Insurance Quote Car Insurance Companies Ads LIC Life Insurance Features, benefits & premiums of all LIC plans. Choose the best ApnaPaisa.com/LIC L&T Infrastructure Bonds CARE AA+ rated infrabonds from L&T. Visit our website for disclaimers. www.ltinfrabond.com When shopping for insurance, it is important to understand what you are getting when you purchase a home owner insurance policy. Some people decide to buy insurance online by using popular online insurance quote websites and some stay with a local agent. Whatever choice you make, knowing and understanding your home insurance policy coverages is important. A Home Owners Insurance Policy is designed to protect home owners against certain perils. There is usually a deductible when filing a home insurance claim unless noted. Individual home insurance policies are determined by named perils and exclusions in a policy. Consult your agent or insurance company regarding any exceptions that may apply. Whether you buy your home owners insurance policy online or with a local agent, the typical home owners insurance policy is divided into 2 parts: Part I: Home Insurance Property Protection Part II: Home Insurance Liability Protection If one was to look at a home insurance declarations page, which is usually the first page in a home owners insurance policy, they would see Part I: Property Protection. This protection is usually broken down into four additional sections: A. Dwelling B. Other Structures C. Personal Property D. Loss of Use Coverage A. Dwelling typically covers your house, attached structures, fixtures in the house such as built-in appliances, plumbing, heating, permanently installed air conditioning systems, and electrical wiring. Coverage B. Other Structures typically covers detached structures such as garages, storage sheds, and fixtures attached to the land including fences, driveways, sidewalks, patios, and retaining walls. Detached structures used for business purposes are not covered under a personal home owners insurance policy. Coverage C. Personal Property typically covers personal property including the contents of your home and other personal items owned by you or family members who live with you. This protection can be based on actual cash value or replacement cost. Home insurance policies may provide limited coverage for small boats, however, most home insurance policies do not cover motorized vehicles unless they are unlicensed and used only at your home. Some items may have coverage limits such as firearms, artwork, business property, electronic data, jewelry, and money. Extra coverage is usually available by adding endorsements to your policy. Coverage D. Loss of Use typically covers living expenses over and above your normal living expenses if you cannot live in your home while repairs are being made or if you are denied access by government order. There are also Additional Property Coverages home owners insurance polices may provide such as the removal of debris along with damaged trees and shrubs, fire-department service charges, property removal, theft or illegal use of credit or transfer cards, collapse of buildings, and glass breakage if caused by a covered perils. Endorsements can also be added to your home owner insurance policy at an additional cost to provide extra protection. Examples of endorsements include: Guaranteed replacement cost coverage will pay the cost to rebuild your home as long as you have met the requirements of your home insurance policy. Extended replacement cost coverage insures your home for a specific value and usually adds a 20-25% extended limit if reconstruction costs run over. Inflation Guard increases the amount of your home owner insurance to keep up with inflation so that you can maintain adequate coverage to replace your home in the event of a loss. Scheduled personal property protects articles such as jewelry, furs, stamps, coins, guns, computers, antiques, and other items that often exceed normal policy limits in your regular home owners insurance policy. It often provides coverage that is broader than the coverage in the home insurance policy. There normally is not a deductible for this coverage. Increased limits on money and securities provide additional coverage for money, bank notes, securities, and deeds. Secondary residence provides protection for a second home such as a summer residence. Theft coverage protection broadens the theft coverage to include personal contents in your motor vehicle, trailer or watercraft to be covered without proof of forcible entry. Credit card forgery and depositor's forgery coverage provides protection against loss, theft or unauthorized use of credit cards. It also covers forgery of any check, draft, or promissory note. No deductible applies to this endorsement.

Home Insurance

Home Insurance Comparison Home insurance doesn’t need to be expensive. With comparethemarket.com you can search some of the markets top home insurance providers to find a quote that’s right for you and could save you money! One form and a couple of minutes of your time and you could be comparing great prices for your home insurance that could save you money. Whether you’re after a combined buildings and contents insurance policy or separate buildings insurance or contents insurance quotes, we here at comparethemarket.com can help. With comparethemarket.com you can not only compare prices but you can also compare home insurance policy features. You will be able to include personal possessions cover to your home insurance quote for an additional premium. This is cover (both in and away from home) for your personal possessions that can be taken outside the home such as your camera, iPod or handbag. On the price comparison table you can select to compare home insurance quotes with optional extras added. You can add accidental damage cover to either or both your buildings and contents insurance. You will also be able to add family legal protection and home emergency cover to your home insurance comparison. You will also be able to adjust the voluntary excess on both your buildings and contents insurance cover. With comparethemarket.com you can compare quotes from over 50 home insurance providers including Budget Insurance, the Post Office, More Than and AXA home insurance. Compare with comparethemarket.com today and see how much you could save on your home insurance

full coverage auto insurance quotes

full coverage auto insurance quotes Looking for cheap full coverage auto insurance but don’t want to spend hours on the phone talking to insurance companies? Check our 100% free cheap auto insurance quotes tool to compare auto insurance rates from dozens of companies. Just fill in all the required information above and you’ll be able to compare car insurance rates from dozens of companies in only a few minutes. >>>>>>>> Get your free quote now <<<<<<<<<<< Are you sure you need full coverage auto insurance? If you’re driving a brand new car, and you drive often it is highly recommend that you look into full coverage auto insurance. If you are driving an older car (10+ years) and don’t drive often the cost of insurance compared to the the replacement cost of your vehicle makes getting full coverage insurance a bad deal. Benefits of full coverage auto insurance - Covers medical expenses - Covers all damage/replacement costs of car Negatives of full coverage auto insurance - Very expensive compared to normal car insurance - Very few times worth the extra costs 4 Tips for getting the best full coverage auto insurance: 1) Make sure you shop around. Our cheap auto insurance quotes tool works well and will help you save hundreds/thousands of dollars so use it! 2) Try to negotiate. If you can sign more family members on with a certain insurance company you can get family rates which are far better 3) Have home insurance? If you do have home insurance it’s wise to call up your home insurance company and ask for costumer loyalty pricing on auto insurance. You’d be surprised on the savings this can have. 4) Make sure to complete driving school. Finishing driving school even if not required will lower your auto insurance by a modest amount, which over time will add up to a very big amount of money saved.

free auto insurance quotes online

Get Your Free Insurance Quotes Online Fast and Easily! Discover one-stop shopping for all your insurance needs from QuoteScout.com today. You'll save money as you quickly compare top insurance carriers quotes. All of these online insurance quotes are free and without any obligation. You'll find that we have one of the easiest insurance quote forms available. It's a very fast and easy process that takes just a few minutes from start to finish. Auto insurance quotes will protect you against financial loss if you have an automobile accident. Auto insurance provides property coverage to pay for damage to or theft of your car. Liability coverage is also provided by your auto insurance to pay for your legal responsibility to others for bodily injury or property damage. And finally, your auto insurance provides medical coverage to pay for the cost of treating injuries and rehabilitation. Car insurance quotes - Purchasing car insurance can be quite confusing. We are here to help you. To begin, our free car insurance quotes give you the financial protection you want and need whenever you have a car crash. Car insurance rates can vary greatly from company to company, so let us shop around for the best deal for you. Good auto insurance will provide you with medical coverage to pay for any necessary injury treatment and rehabilitation costs. The Home insurance quotes section provides you real financial protection against disasters, and a standard policy insures the actual home itself as well as the personal property you keep there. Homeowners insurance is a package policy, which means that it covers both damage to your property and your legal responsibility (liability) for any injuries you or your family might cause to other people. This can include damage caused by pets and by most disasters (although there are exceptions). We are working hard to bring you updated Health Insurance and Life Insurance products; for the interim, we recommend you visit our partner for an immediate Term Life Insurance Quote. To learn more about the different types of insurance, please visit our Insurance Tips & Advice Center, where you’ll find over 200 tips for saving money when shopping for insurance. Also visit our Insurance Articles section, where you’ll find many educational articles about different types of insurance. Arizona Auto Insurance California Auto Insurance Quotes Colorado Auto Insurance Florida Auto Insurance Georgia Auto Insurance Illinois Auto Insurance Indiana Auto Insurance Kansas Auto Insurance Michigan Auto Insurance New York Auto Insurance North Carolina Auto Insurance Ohio Auto Insurance Oregon Auto Insurance Pennsylvania Auto Insurance Texas Auto Insurance Virginia Auto Insurance Washington Auto Insurance

automobile insurance coverages

Insurance Coverage Definitions | Car Insurance Coverage Auto insurance coverage is packaged into different coverage types. It is usually easiest to determine what you are required to purchase. Then, you determine what you have that needs to be protected. You purchase insurance to protect yourself (your family) in the event that you suffer a loss to your person or property and you purchase insurance to protect yourself (your family) from losses suffered by others. Below is a breakdown of each car insurance coverage type to help you understand more about what each type of coverage protects. Next to each type is a term that is usually associated with that coverage type (i.e. BI and PD). LIABILITY COVERAGE (LIABILTY) BODILY INJURY LIABILITY (BI): Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it is a good idea (and usually a company requirement) to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy. It is mandatory in most states. How much protection does this coverage provide? The dual coverage limits refer to the maximum amounts that will be paid per person, per incident, respectively. Essential things to keep in mind when selecting your Bodily Injury limits: If you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy cause a serious injury where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. PROPERTY DAMAGE LIABILITY (PD): Covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy. How much protection does this coverage provide? The coverage limits refer to the maximum amounts that will be paid per accident. Essential things to keep in mind when selecting your Property Damage limits: If you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy cause a serious accident where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. Related Coverage: Limited Property Damage, which is available in Michigan. It provides protection if you are at fault in an accident that causes damage to another vehicle. PHYSICAL DAMAGE COVERAGE (COMP AND COLL) COMPREHENSIVE COVERAGE (OTHER THAN COLLISION, OTC, COMP): Covers your vehicle, and other vehicles (in limited scenarios) you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. It pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it. How much protection does this coverage provide? The amount you see typically refers to the deductible, or the portion of a claim you are responsible for paying. A higher deductible can substantially lower the cost of insurance premiums. You should balance this savings against your ability to absorb a larger out-of-pocket expense. For example, if you set your deductible at $1,000 and your car sustains damages totaling $1,500, you will pay $1,000 and your insurance company will pay $500. Who might benefit from buying Comprehensive coverage? If your car is financed or leased, the finance company will probably require that you carry this coverage. If you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss. If you have an older car or one in poor condition, you may not want to pay for this coverage. COLLISION COVERAGE (COLL): Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it. How much protection does this coverage provide? The amount you see typically refers to the deductible, or the portion of a claim that you’re responsible for paying. A higher deductible can substantially lower the cost of insurance premiums. You should balance this savings against your ability to absorb a larger out-of-pocket expense. For example, if you set your deductible at $1,000 and your car sustains damages totaling $1,500, you will pay $1,000 and your insurance company will pay $500. Who might benefit from buying Collision coverage? If your car is financed or leased, the finance company will probably require that you carry this coverage. If you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss. If you have an older car or one in poor condition, you may not want to pay for this coverage. UNINSURED AND UNDERINSURED MOTORIST COVERAGE (UM) UNINSURED MOTORIST BODILY INJURY (UM): Covers you, the insured members of your household and your passengers for bodily/personal injuries, damages, or death caused by an at-fault uninsured or hit-and-run driver. If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover your medical expenses, up to the limit on your policy. Who is covered? Policyholder Other drivers covered by the policy Passengers How much protection does this coverage provide? If the other driver involved in an accident is uninsured, this coverage pays up to the limit you purchase. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively. Who might benefit from buying uninsured motorist bodily injury coverage? Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you will be responsible for paying the additional amount. UNDERINSURED MOTORIST BODILY INJURY (UNDUM): Covers you, the insured members of your household and your passengers for injuries, damages or death caused by the negligence of a person with insufficient insurance. If you have an accident with a person whose coverage cannot meet your damages, your policy will meet the difference-up to the limit of liability listed on your policy. Who is covered? Policyholder Other drivers covered by the policy Passengers How much protection does this coverage provide? If the other driver involved in an accident is underinsured, this coverage typically pays any difference between what the other driver’s insurance covers and what your bodily injury coverage will pay. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively. If the limits you purchase are lower than an accident’s costs, you’ll be responsible for paying the amounts over your limits, unless you’re covered by health insurance. Who might benefit from buying uninsured motorist bodily injury coverage? Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you will be responsible for paying the additional amount. Both UM and UNDUM coverage can be combined or sold separately depending on the state and the insurance carrier. UNINSURED PROPERTY DAMAGE (UMPD): Covers your auto when property damage is sustained by an insured and the negligent operator does not possess insurance. How much protection does this coverage provide? If you don’t have Collision coverage, Uninsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some states have limits at $3500, some are lower and some are higher). If you have Collision coverage, Uninsured Motorist Property Damage coverage only pays your Collision deductible (in some states). Does this coverage replace Collision coverage? No. Uninsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if you are involved in an accident caused by a driver without insurance coverage. UNDERINSURED MOTORIST PROPERTY DAMAGE (UNDPD): Covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages. How much protection does this coverage provide? If you don’t have Collision coverage, Underinsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some states have limits at $3500, some are lower and some are higher) If you have Collision coverage, Underinsured Motorist Property Damage coverage only pays your Collision deductible (in some states). Does this coverage replace Collision coverage? No. Underinsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if you are involved in an accident caused by a driver without enough liability insurance coverage. Both UMPD and UNDPD coverage can be combined or sold separately depending on the state and insurance carrier. OTHER COVERAGE TYPES PERSONAL INJURY PROTECTION COVERAGE (PIP or MEDEX): Covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on a first-party basis, without regard to fault. It is only available in certain states. Depending on the state, the covered parties below and the amount of protection may vary. Who is covered? Policyholder Policyholder’s relatives in the same household Passengers Other authorized drivers Policyholder and family members if they are injured while riding in someone else’s car or as a pedestrian when struck by another vehicle. (in some states) How much protection does this coverage provide? Total payments covered by PIP are the limits indicated. That is the maximum amount that will be paid per person for any combination of covered expenses (some states offer limits and others set it to an amount like $10,000). Specific limits and coverages vary by state. Who might benefit from buying additional medical coverage along with PIP? People who don’t have health insurance that adequately covers the expenses listed above or people who carpool or frequently drive with passengers. Related Coverage: Additional Personal Injury Protection is available in some states where PIP is available; some carriers may offer Additional PIP. Additional Personal Injury Protection acts as a supplement to the PIP coverage required by your state. Guest Personal Injury Protection provides coverage to guest passengers in your vehicles. It is required when all drivers on your policy have rejected no-fault coverage (state of Kentucky). In states like New Jersey, you have to choose a Personal Injury Protection Plan. Here is a description of those choices: Full PIP Primary— acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses, as detailed below. Full PIP Health Primary— should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses, as detailed below. Please note: Full PIP Health Primary is not available if you use Medicare or Medicaid as your primary health insurance or if you are an active member of the military. In addition, some health insurers do not cover injuries related to car accidents. If you are unsure of what your health insurance covers, you should select Full PIP Primary or Medical Only PIP Primary. Medical Only PIP Primary— acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. Medical Only Health Primary— should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. Please note: Medical Only Health Primary is not available if you use Medicare or Medicaid as your primary health insurance or if you are an active member of the military. In addition, some health insurers do not cover injuries related to car accidents. If you are unsure of what your health insurance covers, you should select Full PIP Primary or Medical Only PIP Primary. BASIC AND ADDITIONAL REPARATION BENEFITS (BRP or PIP): Basic Reparations Benefits will cover medical up to the selected amount. In some states, Additional Reparations Benefits is available to extend additional benefits. Additional Reparations Benefits is usually primary over any Health Insurance. This coverage is optional and you cannot have Medical Payments with this coverage. FIRST PARTY BENEFITS - MEDICAL (FPB OR MEDEX): First Party Benefits cover several areas of insurance coverage; however, this definition is for First Party Benefits-Medical. Similar to medical payments coverage and Personal Injury Protection, FPB helps pay for your medical expenses if you or relatives living in your household are injured in an accident. Specific limits and coverages vary by state, but typically these services include: Related medical and surgical treatment Essential rehabilitative services (physical therapy, speech pathology, etc.) Necessary dental, psychiatric, psychological, and optometric treatment Ambulance and nursing service Required medications, medical supplies, and prosthetic devices Who is covered? First Party Benefits-Medical provides coverage to the policyholder, drivers listed on the policy and relatives living in the same household as the policyholder. How much protection does this coverage provide? Total payments covered by FPD are the limits indicated. That is the maximum amount that will be paid per person for any combination of covered expenses. In addition to First Party Benefits – Medical, these coverages are available and sometimes combined as a package: First Party Benefits - Accidental Death, First Party Benefits - Combination Package, First Party Benefits - Extraordinary Medical, First Party Benefits – Funeral, and First Party Benefits - Income Loss. MEDICAL PAYMENTS (MEDPM): Covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. This coverage applies, regardless as to who is at fault. Medical Payments may also cover policyholders and their family members when they are injured while riding in someone else's car or when a car hits them while on foot or bicycling. Coverage is limited to the terms and conditions contained in the policy. Who might benefit from buying Medical Payments coverage? If you and your regular passengers already have health insurance that covers similar expenses, medical payments coverage may be unnecessary. Check your health insurance policy for details. WORK LOSS: Also referred to as Optional Basic Economical Loss This coverage helps you, drivers listed on your policy, and your passengers recover lost wages if you are unable to work due to accident-related injuries. LOAN/LEASE GAP INSURANCE (LLG): Also referred to as GAP, Loan/Lease Payoff Loan/Lease Gap Coverage is optional. To buy this coverage, you must have Collision coverage and Comprehensive coverage. You must have a deductible and your car must have a lien holder because it is financed or leased. This coverage protects you if your car gets damaged and will reimburse you for the difference between the following items: The actual cash value of your car at the time of the loss, less the applicable deductible and the vehicle's salvage value (if retained by the owner or insured) and; Any greater amount owed on the vehicle at the time of loss, less any unpaid finance charges, excess mileage or wear and tear charges, any other charges or expenses associated with the loan or lease, and the vehicle's salvage value (if retained by the owner or insured). Please follow this link to learn more about GAP Insurance. GAP insurance is usually available as a separate policy from the auto policy. It is much less expensive to purchase LLG coverage with your policy. RENTAL CAR REIMBURSEMENT (RREIM): Covers renting a car if your car is not drivable or while your car is being repaired because of a covered accident. TOWING AND LABOR (TL): Also, referred to as Tow Club, Emergency Road Service, Emergency Roadside Service Coverage is only available if you purchase Comprehensive and/or Collision Coverage. Some policies limit coverage to pay only when a claim has been issued against your physical damage coverage (an accident). Coverage limits are different for each carrier, but typically, this is what is covered. ACCIDENTAL MEDICAL PROTECTION PLAN (AMPP): Also referred to as Accidental Death and Dismemberment Covers you (or family under a Family Plan) while driving or riding in any private passenger vehicle. Defined accident medical expenses are paid directly to you without a deductible. What is covered? Towing Tire changing Gas, oil, and water delivery Battery services Lockout services How much protection does this coverage provide? The coverage limits you see in your quote refer to the maximum amount that will be paid per incident, per term, respectively. PROPERTY PROTECTION INSURANCE (PPI): This is required coverage in Michigan. It provides protection if you cause damage to properly parked vehicles or fixed properties such as buildings or lampposts in the state of Michigan. ACCIDENTAL DEATH BENEFIT (ADB OR ADD): Also, referred to as Accidental Death, Accidental Death Indemnity A death benefit pays if bodily injury causes the death of you or a covered family member. CUSTOM PARTS AND EQUIPMENT (CPE): Also, referred to as Additional Customized Parts Or Equipment, Customized Parts and Equipment, Electronic Equipment Covers if your vehicle has permanently installed custom parts or equipment other than those installed by the original manufacturer. Examples of customized equipment include: Any dealer-installed equipment that is not offered by the original manufacturer Special equipment on vehicles, vans, and trucks, including: running boards, brush bars, roll bars, undercarriage lighting, fog lights, bed liners, camper shells, trailer hitches, etc. Customized wheels, spoilers, suspensions or performance-related equipment Stereo, sound recording and television equipment Customized paint or decals Put your zip code in above and get a quote. CarInsurance.com's online quote form has the most comprehensive coverage section, specific to your state with further definitions and guidance. You can also ask licensed insurance agents questions about any coverage option. Disclaimer: This information is provided for information purposes. They are not intended to substitute informed professional advice. These responses should not be interpreted as a recommendation to buy or sell any insurance product, or to provide financial or legal advice. Please refer to your insurance policy for specific coverage and exclusion information. Please read our Terms of Service.

automobile insurance terms in california

CONSUMERS: GLOSSARY OF INSURANCE TERMS This is a list of terms found in the department's brochures. It is not meant to be all inclusive, but should help with your understanding of the documents. Terms associated with Surety and Bonds are listed separately. 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. Admitted Company An insurance company authorized to do business in California. Agent A licensed person or organization authorized to sell insurance by or on behalf of an insurance company. Aircraft Insurance Coverage for the insured in the event that the insured's negligent acts and/or omissions result in losses in connection with the use, ownership, or maintenance of aircraft. Automobile Insurance Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages. Binder A temporary or preliminary agreement which provides coverage until a policy can be written or delivered. Bodily Injury Any physical injury to a person. The purpose of liability insurance is to cover bodily injury to a third party resulting from the negligent or unintentional acts of an insured. Boiler and Machinery Insurance Covers losses resulting from the malfunction of boilers and machinery. This coverage is usually excluded from property insurance creating the need for this separate product. Broker A licensed person or organization paid by you to look for insurance on your behalf. Burglary Coverage against loss as a result of forced entry into premises. Cancellation The termination of insurance coverage during the policy period. Flat cancellation is the cancellation of a policy as of its effective date, without any premium charge. Claim Notice to an insurer that under the terms of a policy, a loss maybe covered. Claimant The first or third party. That is any person who asserts right of recovery. Collision (Auto) Reimburses you for damage to your automobile sustained in a collision with another car or with any other object, movable or fixed, (for example, you accidentally backed into another object while pulling out from a parking stall and causing damage to the bumper and fender of your covered automobile). Collision Deductive Waiver This coverage waves your collision deductible if you are hit by an negligent uninsured motorist. Common Carrier Liability Coverage for transportation firms that must carry any customer's goods so long as the customer is willing to pay. Examples include trucking companies, bus lines, and airlines. Comprehensive (Auto) Provides coverage for any direct and accidental loss of, or damage to, your covered automobile and its normal equipment, to include but not limited to fire, theft or malicious mischief. Comprehensive Glass Insurance Coverage on an "all risks" basis for glass breakage, subject to exclusions of war and fire. Credit Life Insurance Insurance issued to a creditor (lender) to cover the life of a debtor (borrower) for an outstanding loan. Decline The company refuses to accept the request for insurance coverage. Deductible The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium. Depreciation A decrease in value due to age, wear and tear, etc. Disability Insurance Health insurance that provides income payments to the insured wage earner when income is interrupted or terminated because of illness, sickness, or accident. Endorsement Amendment to the policy used to add or delete coverage. Also referred to as a "rider." Exclusion Certain causes and conditions, listed in the policy, which are not covered. Expiration Date The date on which the policy ends. Face Amount The dollar amount to be paid to the beneficiary when the insured dies. It does not include other amounts that may be paid from insurance purchased with dividends or any policy riders. Financial Guarantee Insurance A surety bond, insurance policy or, when issued by an insurer, an indemnity contract and any guaranty similar to the foregoing types, under which loss is payable upon proof of occurrence of financial loss to an insured claimant, obligee, or indemnitee. Fire Insurance Coverage for loss of or damage to a building and/or contents due to fire. Good Driver Discount To be eligible for the Good Drivers Discount all operators of the insured vehicles must have been licensed for three or more year, have no more than a one (1) point charge on their driving record and has not been determined "at fault" in an accident resulting in bodily injury or death to any person. Grace Period A period (usually 31 days) after the premium due date, during which an overdue premium may be paid without penalty. The policy remains in force throughout this period. Guaranteed Insurability An option that permits the policy holder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability. Health Insurance A policy that will pay specifies sums for medical expenses or treatments. Health policies can offer many options and vary in their approaches to coverage. Homeowner Insurance An elective combination of coverages for the risks of owning a home. Can include losses due to fire, burglary, vandalism, earthquake, and other perils. Incontestable Clause A policy provision in which the company agrees not to contest the validity of the contract after it has been in force for a certain period of time, usually two years. Insured The policyholder - the person(s) protected in case of a loss or claim. Insurer The insurance company. Legal Insurance Prepaid legal insurance coverage plan sold on a group basis. Liability (Auto) Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property as a result of an auto accident. Liability Insurance Coverage for all sums that the insured becomes legally obligated to pay because of bodily injury or property damage, and sometimes other wrongs, to which an insurance policy applies. Life Insurance A policy that will pay a specified sum to beneficiaries upon the death of the insured. Limit Maximum amount a policy will pay either overall or under a particular coverage. Loan Value The amount which can be borrowed at a specified rate of interest from the issuing company by the policyholder, using the value of the policy as collateral. In the event the policyholder dies with the debt partially or fully unpaid, then the amount borrowed plus any interest is deducted from the amount payable. Marine Insurance Coverage for goods in transit and the vehicles of transportation on waterways, land, and air. Material Misrepresentation The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged. Medical Payments Will pay reasonable expenses incurred for necessary medical and /or funeral services because of bodily injury caused by accident and sustained by you or any other person while occupying a covered automobile. Miscellaneous Insurance Includes insurance against loss from damage done, directly or indirectly by lightning, windstorm, tornado, earthquake or insurance under an open policy indemnifying the producer of any motion picture, television, theatrical, sport, or similar production, event, or exhibition against loss by reason of the interruption, postponement, or cancellation of such production, event, or exhibition due to death, accidental injury, or sickness preventing performers, directors, or other principals from commencing or continuing their respective performance or duties; and any insurance not included in any other classes and which is a proper subject of insurance (California Insurance Code, Section 120). Misquote An incorrect estimate of the insurance premium. Mortgage Insurance Life insurance that pays the balance of a mortgage if the mortgagor (insured) dies. Peril The cause of a possible loss. For example, fire, theft, or hail. Policy The written contract of insurance. Policy Limit The maximum amount a policy will pay, either overall or under a particular coverage. Premium The amount of money an insurance company charges for insurance coverage. Premium Financing A a policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees. Pro-Rata Cancellation When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the period coverage was provided. For example: an annual policy with premium of $1,000 is canceled after 40 days of coverage at the company's election. The earned premium would be calculated as follows: 40/365 days X $1,000=.110 X $1,000=$110. Property Damage Damage to another person's property. The purpose of liability insurance is to cover property damage to a third party resulting from the negligent or intentional acts of an insured. Quote An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant. Replacement Cost The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one once the repairs or purchases have been made. Replacement Value The full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions. Reinstatement The restoring of a lapsed policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest. Rider Usually known as an endorsement, a rider is an amendment to the policy used to add or delete coverage. Short-Rate Cancellation When the policy is terminated prior to the expiration date at the policyholder's request. Earned premium charged would be more than the pro-rata earned premium. Generally, the return premium would be approximately 90 percent of the pro-rata return premium. However, the company may also establish its own short-rate schedule. Solicitor A licensed employee of a fire and casualty agent or broker who may act for the agent or broker in some circumstances. Sprinkler Insurance Coverage for property damage caused by untimely discharge from an automatic sprinkler system. Surcharge An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations. Surrender To terminate or cancel a life insurance policy before the maturity date. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture options at the time of surrender. Team and Vehicle Insurance Includes insurance against loss through damage or legal liability for damage, to property caused by the use of teams or vehicles other than ships, boats, or railroad rolling stock, whether by accident or collision or by explosion of engine, tank, boiler, pipe, or tire of the vehicle, and insurance against the theft of the whole or part of such vehicle (California Insurance Code, Section 115). Title Insurance Coverage for losses if a land title is not free and clear of defects that were unknown when the title insurance was written. Underwriting The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks. Uninsured Motorist Bodily Injury Will pay you and your passengers for bodily injury cause by a negligent uninsured motorist, a hit-and-run driver, or by a driver whose insurer is insolvent. Uninsured Motorist Property Damage Will pay for damages to your automobile, set up to a limit, when caused by a negligent uninsured motorist. Waiting Period A period of time set forth in a policy which must pass before some or all coverages begin. Workers Compensation Insurance Coverage providing four types of benefits (medical care, death, disability, and rehabilitation) for employee job-related injuries or diseases as a matter of right (without regard to fault). INSURANCE TERMS USED IN THE AREA OF SURETIES AND BONDS Arrestee - A person in custody whose release may be secured by posting bail. Bailee - A person or concern having possession of property committed in trust from the owner. Bid Bond - A guarantee that the contractor will enter into a contract, if it is awarded to him, and furnish such contract bond (sometimes called "performance bond") as is required by terms thereof. Court Bonds - All bonds and undertakings required of litigants to enable them to pursue certain remedies of the courts. Effective Date - The date on which an insurance policy or bond goes into effect, and from which protection is furnished. Fidelity Bond - An obligation of the insurance company against financial loss caused by the dishonest acts of employees. Judicial Bond - A bond required in civil and criminal court actions. Named Schedule Bond - A fidelity bond providing coverage for persons listed or scheduled on the bond. Obligee - Broadly, anyone in whose favor an obligation runs. Frequently used in surety bonds, this refers to the person, firm or corporation protected by the bond. Obligor - Commonly called "principal," one bound by an obligation. Under a bond, strictly speaking, both the principal and the surety are obligers. Power of Attorney - Authority given one person or corporation to act for and obligate another, to the extent laid down in the instrument creating the power. Principal - A person or organization whose obligation are guaranteed by a bond. Surety - An arrangement whereby one party becomes answerable to a third party for the acts of a second party. Customarily an insurance company, the party in a suretyship arrangement who holds himself responsible to one person for the acts of another. Surety Bond - A bond which the surety agrees to answer to the obligee for the non-performance of the principal (also known as the obligor). Suretyship - Stated in its simplest terms, suretyship embraces all forms of obligation to pay debts or answer for the default of another.