We understand not everyone knows the who's, what's, where's, when's, & why's of insurance.
We have included a few links and pages that might help you answer a few of those questions you might have on insurance. Can't find the answer here, call us! That is what we are here for!
Agent: An insurance salesperson. a) An independent agent does not work for any insurance company and sells the policies of more than one insurer; b) an exclusive agent sells the policies of only one insurance company.
Broker: An insurance salesperson who deals with agents and companies to find insurance for customers.
Claim: A person's request for payment by an insurer for a loss covered under a policy. Your claims to your company are "first-party claims." Claims made by one person against another person's insurance company are know as "third-party claims."
Collision coverage: Optional insurance which pays for damage to your car caused by collision with another car or object, or by the car rolling over. Frequently required if you have a car loan.
Comprehensive physical damage coverage: Optional insurance which pays for damage to your auto caused by things other than collision or the car rolling over, such as fire, theft, vandalism, flood or hail. Frequently required if you have a car loan.
Conditions: Part of an insurance policy which states your obligations and those of your insurance company in order for the policy to be in effect.
Deductible: The amount which you agree to pay, per claim or per accident. This is subtracted from the total amount paid by your insurer. If the claim is $500 and your deductible is $100, you pay $100 and your insurance company will pay $400. The higher the deductible, the lower your payment will be for the policy, but the more you will have to pay out of your pocket if you file a claim.
Insurance company: A company which, in exchange for a fee (known as a premium), agrees to pay all legitimate claims that may arise under your policy.
Insurance department: A state agency that enforces rules for the insurance business in each state. Valuable source of information about all types of insurance; also handles consumer inquiries and complaints.
Liability: A legally enforceable financial obligation.
Liability coverage: Insurance which pays other people’s losses which you have caused unintentionally or through negligence. a) Bodily injury liability coverage pays medical costs of others and your legal defense costs if your car injures or kills someone; b) property damage liability coverage pays claims against you if you damage someone else's car or property.
Medical payments coverage: Optional insurance in states without "no-fault" insurance systems. It pays for medical and funeral expenses for you and your passengers from an accident, up to policy limits, regardless of who is at fault.
Negligence: Failure to exercise a generally acceptable level of care and caution.
No-fault insurance: A form of insurance available in many states under which each driver in an accident files claims for losses, such as medical expenses, with their own insurance company, regardless of who is at fault.
Policy period: The amount of time an insurance contract (policy) lasts.
Policyholder: The person who buys insurance.
Premium: The amount you pay for insurance coverage.
Proof of loss: Documents that you give to the insurer to support your request for payment of losses. The company uses these documents to determine whether and how much it will pay. (Examples: written repair estimates from auto body shops, police reports.)
Uninsured motorist coverage: Insurance which pays for your costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.
