Important terms regarding Auto Insurance

Page Of Declarations ( Page Dec)


Also known as an auto insurance coverage summary, this page is provided by your insurance company and lists the following:

* Types of coverage you have elected
* Limit for each coverage
* Cost for each coverage
* Specified vehicles covered by the policy
* Types of coverage for each vehicle covered by the policy
* Other information applicable to the policy




Deductible


A deductible is the amount you agree to pay out of pocket for damage resulting from a specific loss or accident. Generally, choosing a higher deductible will lower your premium.

Course Of Improvement For Driver


Drivers age 55 and older can take a voluntary driver improvement course to refresh and enhance their driving skills. Taking this course may qualify these drivers for a discount if they meet eligibility requirements.


Status Of Driver


People can be added to policies with the following types of driver status:

* Rated – Actively drive vehicles on the policy
* Excluded – Not allowed to drive vehicles on the policy and will not be covered under your policy in the event of an accident
* Listed – Residents of the household who do not drive the vehicles on the policy (such as a roommate)




Full Coverage


"Full coverage" is a common term that people use to describe how much auto insurance coverage they have. Though there is no such thing as "full coverage," it often implies that the policy has more than just Liability coverage.




Limits


An insurance coverage limit is selected by you and is the most an insurance company will pay for damages or injuries that apply to the coverage. Most states have laws that specify the minimum limit that must be purchased for each required insurance coverage.



Loan/Lease Payoff Coverage


Loan/Lease Payoff coverage, sometimes called "gap" coverage, pays the difference between what you owe on your vehicle and what your insurance pays if your vehicle is declared a total loss or stolen and not recovered, less your Comprehensive or Collision deductible.



Insured Named


The first person in whose name the insurance policy is issued.



Medical Payments (MedPay) Coverage


MedPay is an optional insurance coverage that pays for reasonable and necessary medical and funeral expenses for covered persons. These expenses must be incurred as a result of an auto accident.



Occasional Driver


A person who is not the primary or principal driver of the insured vehicle is an occasional driver.



Personal Injury Protection (PIP) Coverage


PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle. PIP is the basic coverage implemented in no-fault automobile insurance states.



Date Of Expiration Of Policy


Your current insurance policy ends on your policy expiration date, which is found on your current policy documents, Declarations Page (Dec Page), insurance identification card or recent cancellation notice. This date should not be confused with payment due dates.



Term Of Policy


The length of time your policy is active and in force is your policy term.



Premium


A premium is the amount of money paid to an insurance company in return for insurance protection.



Primary Residence


A primary residence is the place where you will live for the majority of your policy term.



Primary Use


Primary use is how you mainly use your vehicle. Primary use options include to/from work, business, pleasure or farm use.



Principal Driver


The person who drives the car most often is the principal driver.



Property Damage Liability Coverage (PD)


If an insured person is legally liable for an accident, PD coverage pays for damage to others' property resulting from the accident. PD also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.



Coverage of Reimbursement Rental


Rental Reimbursement provides rental car coverage if you have a claim that is covered under Comprehensive or Collision coverage. Daily rental amounts are subject to the limit purchased.



Roadside Assistance Coverage


Roadside Assistance provides services such as towing, flat tire change, locksmith service and battery jump-start to customers, who can elect the service for an additional premium if it is not already included with their insurance policy.



Number For Vehicle Identification


The Vehicle Identification Number (VIN) for your vehicle is usually found on the driver's side of your dashboard, the vehicle registration or the title. The VIN is a combination of 17 letters and numbers that can be used to identify the make, model and year of a car.

Interest Insured Additional

A company or person who has been named as an additional interest insured on a policy can be liable for an accident that involves an insured person or vehicle. For example, a lien holder can be an additional interest insured.

Anti-Theft Device

A device, either active or passive, that attempts to prevent vehicle theft. Active anti-theft devices can track and recover a vehicle and automatically contact a response center to begin the vehicle recovery process. Passive anti-theft devices attempt to prevent theft by using sophisticated electronic car alarms, simple steering wheel locks, etc.


Bodily Injury Liability Coverage (BI)


If an insured person is legally liable for an accident, BI coverage pays for injuries/death to people involved in the accident other than the insured driver. BI also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.



Comprehensive Coverage

If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism. If your vehicle is stolen, Comprehensive covers transportation and loss of use expenses when applicable.



Collision Coverage

When your insured vehicle overturns or collides with another object, Collision coverage pays for the damage to your vehicle. Collision coverage also may extend to a non-owned vehicle or one rented for personal use that is in your custody or that you are operating. Certain exclusions may apply. Refer to your policy.



Continuously Insured

Being continuously insured means your insurance coverage from an insurer or more than one insurer was in effect at all times, without a break or lapse in coverage for any reason.

The Merits of doing your Auto Insurance…..

Auto insurance has a wide range of benefit economically which can help offset the cost of:

• All the medical expenses causing bodily injury to yourself and others due to an accident.

• Loss of wages due to injury which is a result of an accident.

• Merits for the survivors when an accident results in the death or other serious cases like memory loss, disable etc.

• All the Lawsuits, including all legal fees, brought against you as the consequence of an accident.

• Vehicle repairment due to lots of damage caused in an accident.

• Vehicle repairment due to damages caused by other means other than accident.

Reasons for Auto Insurance

If you purchase a car it is better to have its insurance but if you don't have and drive it, it is a foolish idea.So some good reasons of having car insurance are as follows:

- When you get to an accident that's your fault and you are devoid of car insurance you could leave a serious victim without the care they need to come over from what is most probably the worst ordeal of their life.

- Driving without car insurance is an illegal act which leads to the loss.

-Driving without car insurance can lead to the loss of license.

- Driving without car insurance increases the mental tension which leads to more accident.

- You are hit by an uninsured driver and if you do not have a car insurance yourself then your medical care won’t be covered out by any form of personal liability insurance that would have been part of your auto insurance package. It leads to the economical disorder.

- Driving without car insurance can leave personally liable for significant third party claims during accidents.

- If we are a risky driver then the premium for the auto insurance goes on increasing and brings a kind of a insecure and economical burden.

- Whenever we get exposed to any kind of accident,the insurance company provides the compensation we require.

Automobiles and its insurance

Automobile from it Latin name means self moving.Thus, automobiles are the self moving vehicles which carries passenger with it as well as its own engine which drives it.They typically are designed with four wheels and designed to run primarily run on road.

Automobile are the basic need of transportation in present world of luxury.Due to development of different sorts of technology and researches the present world has become best to live in with luxury.Automobiles are also one of those result of such researches.They are the inventions done for comfort.They have made the life of present people highly comfortable and busy too.Such vehicles can also get caught into different accidents and other dangerous factor which can cause serious damage to them and repairmen t of such damaged vehicles can cause a lot of financial burden.So, the insurance of such vehicles which are a part of our life is highly recommended as well as necessary too inorder to reduce the financial burden.

As we are not aware of the disaster that are to occur on our vehicles its insurance has become one of the most important factor presently.Insurance helps us to provide a secure future by providing economic support.As insurance is a legal contract between the insurer and the owner, it makes the owner feel secure about his or her vehicles.If an owner got to any kind of accidents the the insurance company provides compensation to the owner which reduces the economic burden.

What is insurance and why auto insurance?

Concept of insurance is derived against the risk.Risk refers to the financial uncertainty.Insurance reliefs from the word "risk."Human life is full of risk and they want insurance to get relief from such uncertain risks in different forms.Insurance is just a way which provides security to the person and his property.It is a means of shifting such uncertain risk to insurer i.e. insurance company in consideration of a nominal cost called premium.Insurance,thus,is a contract to indemnify losses occurred due to any particular risk in consideration of cash payment in shape of premium.It provides financial protection against any uncertain risk. It should be remembered that the loses cannot be eliminated by insurance but it spreads over a large number of person just only to compensate the loses.Therefore,insurance is the co-operative task of spreading risk of individual to the community.Generally,a fund is created to meet the liability of risk which ensures the protection from risk.As per statutory provision,it is a contract between two competent parties.One party gives financial protection against the risk from incident and second party pays the certain amount in terms of premium. Mainly insurance can be classified into two groups:- 1)Life insurance and, 2)General insurance. Auto insurance is one of the form of general insurance.Auto insurance compensates loss of motor or vehicles due to accident, theft or similar type of risks.Such insurance is compulsory in many countries of present world.Insurance company compensates the loss of goods and amount for the loss on vehicles.