Drivers ED

Assigned Risk Plan Insurance

Minimum liability; otherwise called (SR22 insurance) by insurance companies

Blue Book

information on vehicle pricing, including automobile trade-in values, as well as car ratings and reviews.

Bodily Injury coverage

Pays claim against the owner if someone is killed or injured and the owner is at fault.

Collision coverage

Pay for the damage to Your car if you are at fault. Each time you make a claim…you must pay a deductible.. you must call insurance company fist before getting repairs

Comprehensive Coverage

Pays for damage from the following (when you are not driving at the time of

Deductible

A set amount of money that must be paid by the policy holder in case of damage to his/her car.

Depreciation

A decrease or loss in value, as because of age, wear, or market conditions

Financial Responsibility Law

Law requiring the operator of an automobile to show financial ability to pay for automobile-related losses ( $$$ medical bills or property damage).

Leasing

Vehicle leasing (similar to renting a car for an extended time) is the loaning of the use of a vehicle for a fixed or indefinite period of time. It is commonly offered by dealers as an alternative to vehicle purchase. The key difference in a lease is that after the lease expires, the lessee must return the vehicle to the dealer or buy it.

Liability Coverage

his coverage pays for the damage to the other driver's property and/or their medical bills when you are at fault in a collision.

No-Fault Insurance Policy

Both parties pay for their own damages (their own collision coverage). Those injured in an accident receive direct payment from the company with which they themselves are insured

Policy 

A contract between the person insured and the insurance company.

Premium

The amount of money that an insurance policy costs for a period of time. (monthly, quarterly, semi-annual, or annual

Property-Damage Insurance Coverage

Pays claim against owner if property of others is damaged and owner is at fault.

Real cash value

The worth of a car or other property at the time of the crash.

Claim

The more claims you make the higher your insurance rates go up. So make sure it is worth the call to your insurance company.

Coverage

The type of insurance a person purchases.

rating territory

Where you live 

Uninsured Motorist Coverage

This covers your medical bills only if someone who hits you has no insurance

Underinsured Motorist Coverage

this type of coverage is useful when someone hits you with not ENOUGH insurance to cover the large amount of expenses to your car in the accident.

Grace period 

A thirty day period past the premium due date when an insured is still covered.

Liability limits

The maximum amount of money your insurance company will pay for any given accident.

Negligence

When a person does not act in a fair or wise manner. (example: criminal activity)

Medical payments coverage

This coverage pays for your passengers and you if they are injured in a crash and it is your fault. Don’t get this confused with Bodily Injury Liability (when you pay for the other driver’s medical).

Emergency Road Service

This coverage pays for emergency road service calls

Rent-a-Car Coverage (Rental Coverage) -

Pays for a Rental Car if your vehicle is in the repair shop being fixed because of a collision

Cheapest Insurance to be legal to drive – “ARP Plan” also referred to as “SR-22”

25 - Maximum the company will pay for any one person injured in a cash

50 - Maximum the company will pay for a group injuries in a cash

20 - Maximum the company will pay for any damage you destroy