Car Insurance Policy: Terminology

The car insurance industry has quite a few terms regarding claims, quotes and other insurance related jargon.
There are approximately 26 general terms that are frequently used by auto insurance agencies and other related services. It is extremely  helpful and absolutely necessary to be familiar with the language that is common knowledge amongst the auto insurance companies as a whole. The following are the 10 most frequently used terms and their definitions:

1. "Act of God" - legal insurance term regarding any occurrences that a policy holder can't be held liable or found to be at fault for. Examples of events relating to this term are natural disasters mainly heavy duty storms that result in damage to a vehicle.

2. "Additional Insured" - anyone added to the auto policy ensuring their insurance coverage when driving or riding in the insured vehicle.

3. "Claims Adjuster" - representative of auto insurance company and the initial analyst of any damage caused to the insured policy holder. An adjuster's duty is to make a fair and accurate estimate of  the cost an repair to a vehicle.

4. "Claim" - the term used when an individual informs his or her insurance agency of damage to their insured automobile.

5. "Property Damage Coverage" - the written, outlined policy protection coverage regarding any future          property damage that may occur.

6." Due Care" - any preventative measures to safeguard or prevent damage or threat of theft of insured property.

7. "Endorsement" - amendment in writing to an insurance policy that becomes legally joined to the original

8. "Exclusions" - anything written in the car insurance policy that clearly excludes coverage of such

9. "Salvage" - the act of recovering an insured vehicle that is presumably  wrecked or totaled and then selling it for the maximum price; recovered costs go toward the insurance claim's expenses.

10. "Broker" - individual who specializes in the marketing aspect of insurance organizations and handles the proper policy request details.

Written by Scott Llop