Extended Coverage

This is the inclusion of endorsement of an insurance policy to provide coverage for risks in addition to those covered under the basic policy provisions.

The inclusion of this endorsement is fully dependent on the policyholder. It is entirely left for the assured to decide if he/she ever wants an additional coverage for properties.

It is only recommended for persons whose circumstances put them in the track of an additional coverage and who can really afford the cost of it.

Exclusions

These are items that are not eligible for insurance coverage under the terms of an insurance policy. The insurer does not provide coverage for such items because they are not applicable to the insurance terms.

For example, an auto insurance company may have to provide collision coverage for damage caused by collision but do not provide insurance for damage caused by tear and wear etc

Ensure you understand all the terms of your insurance policy before getting coverage from them. This will put you in a better position to avoid unnecessary acts that do not call for coverage.

Endorsement

This is a document stating the agreed status of a policyholder attached to an insurance policy for the subtraction or addition of an insurance coverage.

It could be essential for any auto insurance policy to be effective. When you have this written agreement attached, your agreed status takes precedence in the policy.

Make sure your insurance policy have the document attached for completeness of your policy and for it to properly be in force.

Driver Education Credit

This is the reduction or discount on auto insurance premiums for which young drivers become eligible upon completion of a driver education course.

This discount is meant for those drivers who would generally not meet up with the regular or usual amount of premiums as billed per month.

In most states, the age limit for those eligible for discount ranges from about 45-50 years.

Generally, the premiums paid by these drivers are lower than that paid by other drivers who are not eligible for this credit.

The driver education program has really made a big impart on the lives of average drivers and the auto insurance industry; creating more insured individuals on reduced premiums and improving the standard and level of auto insurance companies.

Driver Education

This is a professional educational course, often state accredited, for eligibility of drivers for discount on auto insurance premiums. The duration of education largely varies as may be determined by state law.

The students of such education are entitled for driver education credit which gives them the qualification of a premium discount.

The amount paid as premium by drivers of such course are quite different from those who have not undergone such educational course.

Depreciation

This is the drop or reduction in the value of an item or property over time. There are a number of factors affecting the reduction of the actual value of a property. These include collision, as can be seen from that experienced by car drivers.

Another factor affecting the drop in value of an item is accident. Not unusual for car drivers, but it can greatly reduce the market value of a car or any other property.

Some auto insurance companies do not offer coverage for value reduction of a car, but can provide insurance coverage if such is caused by factors that are insurable, e.g. collision, accident etc

If you intend to have your car insured when its value is reduced by an insurable factor such as collision, then you are to have your car insured under the collision coverage of your insurer.

Deposit Premium

As the name implies, it is the payment for an insurance policy by an individual considered as a prospective policyholder after applying for an insurance policy.

Insurance contract are usually followed when the individual's application is finally reviewed and accepted. For most insurance companies, the least premium that can be paid as at the time of application for the insurance policy is per month.

The validity of premiums deposited can be determined by the number of months allocated for such premiums and the duration an assured is covered as at the time the policy is in force.

Discount

It is the abatement of premiums of the insured for meeting up certain requirements or criteria. The policyholder may be entitled for some benefits and coverage which may not be generally issued to others covered under the same policy.

The reduction rate of premiums is mostly different from one insurer to the other, and depends on the type of policy of the assured.

Most insurers would grant the benefits of high loss reduction rate and increased policy limits or claim for their assured.

Some auto insurance companies may have specific period when they offer to reduce the premiums of their policyholders when these qualify or meet up to the requirement.

Declaration Page

This is the part/page of an insurance policy or contract which contains all vital information pertinent to the insurance policy, such as the name and address of the insured, the dates of commencement and ending of the coverage, the duration and amount of coverage, applicable and payable premiums, name and address of insurance company, the name and description of insured property, and the actual location of insured property.

In order for your (auto) insurance policy to run smoothly, it is strongly recommended that you strive to complete all required information needed on the basis of your insurance policy. Do not be surprised that things may not actually go well during the time your insurance policy is effective when there is failure to do so.

Typically, an insurer will most certainly demand all details you are expected to submit. This makes up your unique and special declarations that can easily be stored on the database of your insurer. It is much like registering in an institution, which is very vital for your membership status.

Among the numerous reasons for this is due to the fact that most policyholders have actually missed out on their claim they are expected to receive due to none or incorrect details of the insured name and address as well as the name and description of property which may have a negative bearing on your policy.

Declination

This is the refusal of an insurer to insure an individual under a policy after careful assessment of the application for insurance and any other germane factors. Typically, an auto insurance company would prefer to provide coverage for an insurer with good credit.

However, not all state or insurance companies would condone any form of declination just for some reasons, especially for a reason of poor credit. They may be kind enough to offer insurance coverage directly or indirectly to those with poor credit as in the case of others having good credit.

Refusing to insure an individual may most likely lead to lack of insurance benefits and protection (coverage) from an insurance company. The cause for disqualification of these individuals is as seen and assessed from the individual's insurance application.

The cases of declination are not limited to the auto insurance industry. It is also applicable to other fields of insurance. It may be a sad experience for someone who yearns for an insurance coverage only to be disapproved after the evaluation of applications.

There are appropriate steps that you can take to ensure you are not restrained or disapproved from getting that coverage you desire. More details will be given on these and other important information from future posts on this blog.

Deductible

You may likely have heard such word or heard others speak of it, but do not know what it means. In the insurance field, the word refers to the amount of money (as applies to the insurance policy) that you (the policyholder or insured) must pay to your insurance company on the event of a loss, before your insurance company can offer you a claim for the loss.

This is an up-front payment as applied to you (the insured) under the insurance policy, to be qualified for the benefits of loss coverage that your insurance company will offer to you. It is a general feature of most insurance companies, but as applied to the law of the state.

The amount considered to be deductible varies, but in most states it may range from about $200-$450. Policyholders of collision coverage or that of the comprehension coverage are entitled for deductible, for their loss to be fully reimbursed.

Paying a deductible that is high will most likely save more money for you on your insurance policy. But be informed that your insurance company payment for loss coverage will be determined by the policy limits of your insurance company as in the case of auto insurance.

When running an auto insurance policy, be prepared to pay for your deductible concerning any possible loss. In doing so, you are telling your insurance company to pay for all the other huge expenses for loss coverage.

Damage

This is another term related to the auto insurance industry. In speaking of this, one is usually referring to the loss of one or more insured properties e.g. car, or the harm that has befallen the policyholder in an accident.

Typically, an auto insurance company would offer a claim to you (the insured) that has experienced the damage in one way or the other, by means of the insurance company adjuster.

It may be important that you (the policyholder) have all the correct details filed regarding any damage that has occurred before sending a claim notice to your auto insurance company. This may include the total amount of incurred loss, as computed from the damage.

This is because some auto insurance companies would want to know or determine the cost of damage before offering a claim to you (the claimant), which is absolutely usual. Following legal procedures of your insurance company would greatly help in the reimbursement of your car.

Coverage

These are the benefits and protection provided by the insurance company to a policyholder, from an insurance contract. These benefits may differ from one insurance company to the other, but may have similar underlying principles. A good example of an auto insurance coverage is the collision coverage.

Sometimes, the protection provided by the insurance company may depend on the terms of policy of the insurance company and state law and custom, as well as the regular payment of premiums and deductible by the insured.

Benefits and/or protection may be lost or reduced if the insured is no longer an active policyholder or fail to pay the required deductible on the event of an incurred loss, or if he discontinue with the policy e.g. if he sells the car or vehicle to an individual who may not continue with the policy, leaving him having no car that he makes use of, or under his control.

Conversely, if the car or vehicle is sold to someone who continues with the policy then the insurance coverage may likely continue. But this may fully depend on the insurance company under which the car is insured. If that is the case, collision coverage or the comprehensive coverage of the car may be directed to the new car owner.

Collision Damage

As the name implies, this is simply the loss or damage caused by collision of two or more moving vehicles. The damage caused by collision is one of the major concerns of auto insurance companies.

This damage can be covered under a special auto insurance field called the collision coverage, whose benefits can be enjoyed by the policyholder of the insurance company.

The damage caused by collision is one key problem that can be successfully addressed by reliable, reputable auto insurance companies to the benefit of their policyholders.

Whenever there is collision related damage, policyholders can send a notice of claim to the insurance company, which will eventually be resolved under the collision coverage policy, undertaken by the insurer or insurance company adjuster.

Collision

This is the action of two or more moving cars, vehicles hitting each other, or object. It is the physical contact of a vehicle with another or other physical object e.g. a building, pole etc. There is an increasing number  of vehicle collision, resulting in car damage, thereby causing an incurred loss.

Most auto insurance companies have a special coverage for vehicle collision that can be enjoyed by the policyholder of the insurance company. The collision of cars and vehicles can best be covered under collision coverage of auto insurance policy.

The collision coverage for vehicle collision can be determined by the insurer policy limits as well as that of the cost of collision damage. Car collision can be reimbursed by a claim as demanded by the claimant under the insurance terms of policy.

Carrier

This is the insurance company that underwrites or issues insurance policy to policyholders, but in terms of auto insurance, it may be called an auto carrier.

There are many insurance companies worldwide and have their own method of operation according to local law and custom, and economic level of the state or country at large.

The term carrier is referred to the insurance company because it is the insurance company that actually carries the risks for the policyholder.

Casualty

This refers to the loss or liability of the insured resulting from an accident, damage, storm etc.

The policyholder can then be compensated for the incurred loss of the car from such incident. This is usually done as a claim and carried out by the adjuster.

It is often one of the major causes of a claim by the policyholder. When there are more casualties, there will likely be more claims.

Conversely, when there are few casualties, there will most likely be few claims. But this is mainly based on the policyholder qualification of the conventional liability coverage and the policy terms of the insurer.

Assured

This is the person covered under an insurance policy. It could alternatively be termed insured or policyholder in the insurance field.

The objective of an assured is to be covered under a fitting policy. It is important to consider the insurance that best serve your needs before becoming an assured under an insurance company.

Being an assured under a car insurance company entitles the safety of your car and guaranties your car's protection.

Auto Theft

This is the theft of a car or vehicle resulting in incurred loss. There is an estimation of over 10,000 cars stolen worldwide. Car thefts are becoming a global problem, affecting people of all ages, and the rate have increased in recent years.

The phrase in the auto insurance industry has a bearing on the policy of an insured which can be summarized in the insurance policy terms. It can be covered under auto insurance.

It is highly recommended to have your car insured or covered under the branch of auto insurance called comprehensive coverage should there be the case of a car theft. In the condition where an auto or a car is stolen it is best claimed under comprehensive coverage.

Always ensure the safety of your car despite the insurance coverage it is entitled to. Take the necessary steps to minimize the theft of cars.

Further details will be discussed on the important steps to be taken to ensure the safety of your car and maximizing your car insurance.

Auto Insurance Terms You Should Know

In order to be successful and get the right insurance for that car of yours it is very important that you familiarize yourself with the terms of auto insurance.

That is why knowing such terms will undoubtedly not only build you basic knowledge of auto insurance but will help you in getting the best quotes which will eventually lead to you success in it.

Take a moment to review some of the terms associated with auto insurance and the best quotes made available on this blog before going into it as this will be very much helpful to you in your auto insurance policy success.

Browse all relevant rerms in the auto insurance industry to equip you and build your basic knowledge of auto insurance.

Competitive Estimate

In the auto insurance sphere, this means the request made by an insurance company to a policyholder to submit more than one repair estimates to meet his/her needs. This may involve the total estimates of repair involved.

This usually happens when there is an automobile damage resulting in incurred loss which requires some major of repair.

The policyholder should be sincere and accurate in all details which will be filled in the estimate form and later be submitted to the insurance company.

When an insurance company request for repair estimate to be submitted, the policyholder should comply and do so accordingly without any further delay.