You may come across an array of technical terms when getting insurance for your car, especially as a first-timer. Learning about the basic terminologies can help you make the most of your investment and be assured of your choice. If you feel that you are in unknown territory when people start speaking about auto insurance, here are some must-know car insurance terms for all:
An adjuster is the person who is responsible for investigating an insurance claim. This is the person who is in charge of gauging whether the claim is valid and covered. Additionally, the adjuster is also the one who makes the decision about how much is to be paid for the claim.
An appraisal refers to the assessments done to ascertain the value of your assets like home, antiques, or other objects. This is done to ensure that the coverage is appropriate and enough. It can be carried out after the damage has been done to these objects, typically after a claim is made for the same.
This is one of the basic must-know car insurance terms for all as it is something required from your end when needing insurance money. A claim is the request that you will make to the insurance company after a loss or damage to the insured item. Payment to the client is issued by the company only after the damage has been validated.
Coverage simply means the protection against damage and the extent of it, according to the terms and conditions of the insurance agreement.
5. Declarations page
This is the part of the policy that has all its important details. This includes the duration for which the insurance is valid, the name of the insurer, the details of the coverage, the address of the insurer, and the premium amount to be paid to secure the coverage.
6. Effective date
This simply refers to the date from which the insurance policy is effective.
Also known as a rider, an endorsement is a modification or amendment to the original policy. These changes include adding, deleting, or excluding anything in the coverage terms.
A lapse occurs when a person who has taken out the insurance fails to pay the premium for the same. The policy ends due to this and is referred to as “lapsed.” It is definitely one of the must-know car insurance terms.
9. Loss of history
Loss history is a record of the loss that you have suffered and the values of the items that have been damaged, over a specific period of time.
This term indicates that the insurance coverage is more than the value of the asset that is insured.
11. Policy period
This simply is the term or time for which your insurance will be effective.
Sometimes insurance companies tend to raise the rate due to various factors that significantly increase the chances of damage. This may be due to reasons like distance from emergency services, such as the fire department, or anything similar due to which the asset can suffer more harm.