Common Auto Insurance Terms

Understanding auto insurance terms | Popular car insurance terms | Auto insurance terms you need to know

Looking for the right coverage may be a very confusing and difficult process that you just want to get over with. When applying for West Coast Auto Insurance you may notice a lot of unfamiliar lingo and jargon being used. These words that you don’t know may also make the car insurance process a little more difficult. SkyBlue Insurance wants to help you. SkyBlue Insurance is an authorized agent offering you great deals on West Coast Car Insurance. Below we have listed some of the most commonly used auto insurance terms and their definitions.

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.

Anti-theft Device: A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums.

At-fault: The party who is legally liable for the damages in an accident.

Cancellation: The termination of insurance coverage during the policy period. Also see: Flat cancellation

Claim: A notice to an insurer that a loss may be covered.

Claim Adjuster: A person responsible for investigating and settling a claim. 

Claimant: The first or third party. That is any person who asserts right of recovery.

Collision Deductive Waiver: This coverage waves your collision deductible if you are hit by a negligent uninsured motorist.

Comprehensive (auto): Provides coverage for any damage not caused by a collision.

Deductible: The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable.

Flat Cancellation: The cancellation of a policy as of its effective date, without any premium charge.

Liability (auto): Covers bodily injury and property damage to someone else.

Material Misrepresentation: The policyholder/applicant makes a false statement of any important fact on their application.

Misquote: An incorrect estimate of the insurance premium.

Policy Limit: The maximum amount a policy will pay.

Premium:  The amount of money an insurance company charges for insurance coverage.

Quote: An estimate of the cost of insurance.

Surcharge: An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations.

  1. Parked Cars- They don’t move but somehow get caught up in collisions and insurance claims. Whether someone collides with your parked car, scrapes it, or bumps it with a car door, your insurance claim should be able to cover the damages
  2. Rear-End Accidents- These are the most common of all claims and can happen for numerous reasons. Usually they happen when a driver is stopped at a light or in stop-and-go traffic where someone is not paying attention to the road ahead of them. If you have good collision coverage, you insurance should be able to handle these repairs.
  3. Whiplash- This is injury is usually caused by accidents and sudden stops. The sudden movements that occur during these incidents can cause sever neck and spine pain. Good coverage can help cover medical bills to treat this injury.
  4. Theft- Unfortunately, we live in a world where crime exists. Car theft is a very common claim that West Coast Auto Insurance answers to. If your car is stolen, comprehensive insurance will pay for the replacement value of the vehicle after you pay the deductible.
  5. Windshield Damage- Windshield damage doesn’t just only occur during accidents. Windshields can also be damaged by animals, fallen branches, or hail. One of the most common causes of windshield damage, though, is rocks. Even a rock as small as a grain can cause a small crack in the windshield.
  6. Back Injuries- Back injuries are another common insurance claim. They can be caused by sudden stops or jolts from being rear-ended. Having medical bill coverage on your West Coast Car Insurance policy!

Hopefully having these terms defined for you will make the auto insurance application process a little less daunting. If you’d like to know how much West Coast Car Insurance coverage you can be insured for, go online now and get an instant West Coast Auto Insurance quote for free!

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