A clause used in your insurance contract that gives your insurer the right to demand payment for your policy in full, under specific circumstances outlined there. What could cause your insurer to invoke the acceleration clause? A couple of examples would be non-payment of premiums by a certain date or destruction of property.
Actual cash value is the amount you’ll be reimbursed for what the items or damage cost to repair or replace, minus the depreciation. Actual cash value is likely to be different than the replacement cost value.
A binder is a temporary insurance contract that provides proof of coverage until a permanent policy is issued. For example, when you purchase a new vehicle and you need to call your Agent to bind coverage until you get the official paperwork complete.
Cancellation is the termination of insurance at any time other than the renewal date. Typically, you will be given notice explaining the reason why your policy is being cancelled.
Coinsurance, in property insurance terms, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss. For health insurance, it’s a percentage of each claim above the deductible paid by the policyholder.
Your insurance declarations page, also known as the dec page, is customized to you and summarizes the information essential to your insurance coverage. It includes your name and address, effective policy dates, insured property, policy coverages, limits, deductibles, discounts, policy forms and endorsements.You’ll also find your Insurance agent’s contact information on the declarations page.
The deductible is how much money you’ll be paying out of pocket before insurance kicks in. Let’s say you crash your car into a tree, causing $1,200 in damages to your car. Your policy has a $500 deductible. That means you would pay the first $500 toward the repair bill and the insurance company would pay for the remaining $700. Many people opt for higher deductible plans in exchange for lower premiums.
Emergency road service is available from as an additional coverage at a low cost. Emergency roadside service is for unexpected events on your insured vehicle that leave the vehicle disabled. (And just in case you need it—here’s the number to reach Roadside Service—800-FOR- (800-367-3743).
A floater is a separate policy available to cover the value of goods beyond the coverage of a standard renters insurance policy, including movable property such as jewelry or sports equipment.
If you’re paying on a car loan or a lease, your car may be valued for less than what you owe. So, if your car is totaled in an accident, gap insurance helps you pay off your loan or lease, minus the deductible.
Insurance helps protect you from losing money when faced with an unexpected event. By purchasing insurance, the company where insurance is purchased from takes on the risk that is stated in the insurance policy.
Let’s say you caused an accident and were found at fault. Perhaps you rear-ended a car stopped at a traffic light, or perhaps you lost control of your car on an icy road. Your liability will cover the costs of the damage you caused the other vehicles and property, as well as injuries to other people involved in the accident. In most states, liability coverage is mandatory. Property damage liability won’t cover damage to your own vehicle. That’s where collision coverage comes in.
A multi-policy discount may be available when you buy more than one insurance policy from the same company. Insurance offers many bundling options that could qualify you for a money saving, multi-policy discount.
The policy is the written agreement between you and the auto insurance company. This document details what is covered by your policy (see: “covered loss”) and what isn’t covered by your policy (see: “exclusions”). It also details what your premium costs are. If you have questions about your policy and what it covers, be sure and talk to your agent.
Breakdowns, lockouts, flat tires, dead batteries — these are all situations that can keep you from getting where you need to be. If you add road service protection to your auto insurance policy, help is just a phone call away. With it, you can get a tow, a battery jump, help with your tires, gas delivery and more.
Subrogation protects you and your insurer from paying for losses that aren’t your fault. It allows your insurer to recoup costs from the at-fault party, including your deductible, if the accident wasn’t your fault.
A car is generally considered a total loss when the actual cash value at the time of the loss exceeds the cost of the vehicle’s repair plus its salvage value. Appraisers will estimate the costs of repairs using factors that may differ by state.
A personal umbrella policy provides an extra layer of liability protection. It provides an additional $1 million coverage (up to $5 million available) for you and your eligible family members against lawsuits arising from personal injury or property damage claims.
The vehicle identification number is your car’s serial number. It has 17 characters containing numbers and letters and it’s assigned by the manufacturer. This code reveals information about your car’s make, model and year. You can locate your vehicle’s VIN in a number of places: on the dashboard, printed on the sticker inside your door jamb, on your title documents and on your auto insurance policy.