What Are The Common Terms For Auto Insurance?

car insurance is a contract between you and your insurance company By applying for coverage, you’re agreeing to pay an auto insurance premium to the insurance company. In return, that company agrees to pay covered costs associated with an auto accident once the deductible has been met under the policy terms.

What are the 5 basic parts of auto insurance?

What are three common terms associated with insurance?

  • Actual cash value. There are a few ways your policy can be set up that impact the amount you are paid when filing a claim
  • Actuary. Actuaries are experts at assessing risks by analyzing statistics and data
  • Adjuster
  • Agent
  • Asset
  • Assured
  • At-fault
  • Beneficiary.

What is auto insurance simple terms?

Car insurance is a contract between you and your insurance company By applying for coverage, you’re agreeing to pay an auto insurance premium to the insurance company. In return, that company agrees to pay covered costs associated with an auto accident once the deductible has been met under the policy terms.

What are 4 main types of automobile coverage insurance?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection.

What are the 3 parts of auto insurance?

  • Property coverage pays for damage to, or theft of, the car.
  • Liability coverage pays for the policyholder’s legal responsibility to others for bodily injury or property damage.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

What are the 3 types of car insurance?

  • Liability coverage. Protects you if you cause damage to others and/or their stuff
  • Collision coverage. Covers your car if you hit another car, person or non-moving object (like those darn ornamental rocks cousin Todd has at the end of his driveway). # .
  • Comprehensive coverage.

What are the terminology used in insurance?

Here is some of the basic terminology for life insurance: Insured– The person(s) covered by the insurance policy. Premiums – The monthly or annual amount that you must pay in order to have the insurance coverage. Face Amount– The dollar amount that the insurance policy would pay out upon the death of the Insured.

What are special terms in insurance?

‘Special terms’ may be imposed by an insurer in order to reduce the perceived risk This is when you are offered insurance but not on the standard terms they would normally offer.

What are the 4 elements of an insurance contract?

In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.

What does ot mean in auto insurance?

OT – Other Party or Other Person OTC – Other Than Collision.

How many types of auto insurance are there?

The five types of car insurance are liability, comprehensive, collision, uninsured/underinsured motorist, and personal injury protection/medical payments.

What does full coverage insurance cover?

Full coverage car insurance is a term that describes having all of the main parts of car insurance including Bodily Injury, Property Damage, Uninsured Motorist, PIP, Collision and Comprehensive You’re typically legally required to carry about half of those coverages.

What are the 7 different types of auto insurance you can purchase?

  • Liability Insurance
  • Collision Insurance
  • Comprehensive Insurance
  • Uninsured Motorist Protection
  • Medical / Personal-Injury Protection
  • No-Fault Insurance
  • Gap Insurance.

What are the 8 types of coverage available for an automobile?

  • Liability-Only Coverage.
  • Collision Coverage.
  • Property Damage Liability.
  • Bodily Injury Liability.
  • Comprehensive Coverage.
  • Uninsured/Underinsured Motorist Coverage.
  • Medical Payments Coverage.
  • Personal Injury Protection.

What is the most common type of car insurance?

Bodily injury liability coverage (BI) is the most common type of auto insurance because it’s required in almost every state.

What does CFM stand for in insurance?

Central Mutual Insurance Company continues to grow due to several mergers during these years. 2010. Concordia Farmers Mutual and Central Mutual Insurance Company merge into CFM Insurance, Inc., ranking CFM in the top three of the largest farm mutual insurance companies in the state of Missouri.

What are liability coverages?

Basically, liability coverage is a part of your car insurance policy, and helps pay for the other driver’s expenses if you cause a car accident It does not, however, cover your own. It’s important to note there are two types of liability coverage: bodily injury and property damage.

What are the different terminologies?

terminology. Specialized expressions indigenous to a particular field, subject, trade, or subculture: argot, cant, dialect, idiom, jargon, language, lexicon, lingo, patois, vernacular, vocabulary.

What does CV mean in insurance terms?

Cash value life insurance is more expensive than term life insurance.

What are the terms and conditions of an insurance policy?

Policy Conditions, the section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal.

What are the main principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.

What are the basic elements of insurance?

These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution.

What does PPT stand for in auto insurance?

CR 00 02 08 18 NON-FLEET PRIVATE PASSENGER TYPE (NF-PPT) CERTIFICATION FORM ***TO BE CERTIFIED BY ALL NF-PPT APPLICANTS PRIOR TO. Page 1.

What does CL stand for in insurance?

Claims Leakage (CL), dollars lost through claims management inefficiencies that ultimately result from failures in existing processes (manual and automated). In other words, it’s the difference between what you did spend and what you should have spent on a claim.

What does NR stand for in insurance?

NF: Non-formulary. NR: Not reimbursable.