The terms used in auto insurance are quite numerous, but the most important ones will be outline.
Actual Cash Value (ACV) – This means fair market value in California auto insurance.
Endorsement for Additional Equipment – This means provision of coverage for some parts and equipments which were not installed by the producer.
Adjuster – In California auto insurance, an adjuster is someone who inspects, and determine the loss of an accident under policy terms.
Binder– This means an agreement offering temporary coverage before a policy is issued or delivered.
Broker Fee Agreement – This means the charges for the service provided by the broker to the policy holder.
California Automobile Assigned Risk Plan (CAARP) – This is a coverage made available to persons who cannot buy personal passenger or commercial liability auto coverage due to bad driving history.
Comparative Negligence – This means the percentage of fault that each party contribute to the causes of an accident.
Comprehensive Coverage – This coverage pay for other causes of accident, apart from collision.
Claim – This is notification to insurance company informing them about loss and necessary actions to be taken.
Collision coverage– This covers damage to your car as a result of collision with objects like trees, buildings, etc.
Endorsement– This means a written agreement which adds to or subtracts from and insurance policy.
First Party– This is the person who carries the policy(insured).
Insured – This is the person entitled to coverage benefits when accidents happen.
Insurer – This is the insurance company who pays for damages and give coverage benefits.
Liability Insurance– This covers a policyholder’s legal liability as a result of injuries caused to other people, or damage to their property.
License – This means an authority certificate issued by the Department of Insurance to an insurer to
California auto insurance companies to commence insurance transactions.
Limits – This means the maximum sum of benefits that the
auto insurance company will pay in the case of an accident.
These are just a few terms used in auto insurance by California
auto insurance companies.
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