{"id":232,"date":"2018-06-08T01:04:03","date_gmt":"2018-06-08T01:04:03","guid":{"rendered":"http:\/\/www.allins.com\/blog\/?p=232"},"modified":"2018-10-23T04:10:08","modified_gmt":"2018-10-23T10:10:08","slug":"10-insurance-terms-that-everyone-needs-to-know","status":"publish","type":"post","link":"https:\/\/www.allins.com\/blog\/10-insurance-terms-that-everyone-needs-to-know\/","title":{"rendered":"10 Insurance Terms that Everyone Needs to Know"},"content":{"rendered":"

10 Insurance Terms that Everyone Needs to Know<\/span><\/strong><\/p>\n

\u00a0<\/span><\/strong>Insurance Terms Explained<\/strong><\/span><\/em><\/span><\/p>\n

Not everyone speaks the insurance language, so it can be difficult to work with your agent when they say things that don\u2019t make sense. To your agent, they\u2019ve been training and\"Car\" specialized in this area so it\u2019s no big deal, but to the average person insurance can be tricky and confusing. Some people are just starting their own policies and have never gotten insurance before, some people have been given bad explanations of insurance terms. In an effort to make life easier for those people, we\u2019ve put together a small list of insurance terms that are fairly common in the insurance world. <\/span><\/p>\n

Deductible:<\/strong><\/span><\/em> <\/span>A deductible is the amount that you pay before your insurance company will pay out. For example, your vehicle has thousands of dollars in damage and your deductible is $100. You pay the first $100 and then your insurance company pays for the rest.<\/span><\/p>\n

Replacement Cost:<\/strong><\/span><\/em> This means that replacement of damaged materials will be done with the same exact materials. This is for home policies and this will guarantee that if anything happens to your home, everything gets replaced exactly as it was before.<\/span><\/p>\n

Actual Cash Value (ACV):<\/strong><\/span><\/em> This is the replacement cost minus depreciation.<\/span><\/p>\n

Underwriting:<\/strong><\/span><\/em> This is a term that we use often and it\u2019s not common knowledge. An Underwriter is a position at a company, similar to being an agent or an adjuster. An Underwriter\u2019s job is to dissect the insurance policies and make sure all requirements are met for their company and that the policies are written with the correct coverage. When there is a question in regards to what is eligible with one of our companies, an Underwriter is the person who determines that. <\/span><\/p>\n

PLPD:<\/strong><\/span><\/em> This stands for Personal Liability and Property Damage. This is liability only and is the minimum requirement by the state of MI. This coverage will not cover your vehicle in the event of an accident, it will only cover the liability. <\/span><\/p>\n

No Fault:<\/strong><\/span><\/em> All auto insurance in the state of Michigan is No Fault Insurance. It\u2019s a state law, not an option. So it isn\u2019t an optional coverage that you can add to your policy, it\u2019s our only option. What No Fault means is that when there\u2019s an accident, everyone is responsible for their own vehicles. So regardless of which driver got a ticket for the accident, if your vehicle is damaged, then you will need to contact your own insurance company. So if your vehicle is totaled in an accident and you have liability only on your policy, then there won\u2019t be any coverage for your vehicle. <\/span><\/p>\n

\"\"Full Coverage:<\/strong><\/span><\/em> <\/span>There are many different ways that someone can have \u201cfull coverage\u201d. It can be just comprehensive and collision (many different kinds of collision), or it can include rental car coverage and roadside assistance in addition to that. It can also include higher liability limits and an umbrella policy. So full coverage is a very vague term and when asking for \u201cfull coverage\u201d you should always make sure you know exactly which coverages you do and don\u2019t have. You can also have full coverage with deductibles that are high enough that you would almost never use the coverage. If someone tells you that you have full coverage, you\u2019ll always want to verify with them what exactly those coverages are. <\/span><\/p>\n

Comprehensive:<\/strong><\/span><\/em> Comprehensive is also known as \u201cother than collision\u201d and that\u2019s exactly what it is. Comprehensive is coverage for if your vehicle has damage from fire, theft, vandalism, water damage, natural disasters, falling objects, glass damage, and for hitting an animal. This is particularly useful for windshields and when you hit a deer. Comprehensive is the cheaper coverage to add to your policy and it covers a wide range of perils. <\/span><\/p>\n

Collision:<\/strong><\/span><\/em> This is coverage for when the vehicle \u201ccollides\u201d with another object. There are 3 different types of collision. Limited Collision<\/span> is when the damages to your vehicle are only covered if you were not at fault for the accident. Standard Collision<\/span> covers the damages to your vehicle, no matter who was at fault, and you must pay the deductible amount prior to the insurance company paying out on the damages. Broad Form Collision<\/span> covers the damages to your vehicle, no matter who was at fault, and you only pay the deductible if you were considered at fault for the accident. Again, if you don\u2019t have any kind of collision on your vehicle, then the damages to your vehicle with not be covered in an accident. <\/span><\/p>\n

Premium:<\/strong><\/span><\/em> Your premium is the cost of the policy. When looking at your premium, be sure to check the length of the policy period (usually 6 months or 12 months). We all know about payments and how those work, but it\u2019s difficult to process the thought of \u201cearned premium\u201d with insurance. Earned Premium is when you have had insurance for a period of time (even if you didn\u2019t file any claims) and now you have to pay for that coverage. <\/span><\/p>\n

\u00a0<\/em><\/span><\/p>\n

With these insurance terms explained,<\/em> you\u2019ll be better prepared for your future conversations with your insurance agent. You\u2019ll be able to make better informed decisions when choosing your coverages and deductibles and instead of asking what the agent thinks is best for you, you can decide what coverages you want for yourself! If you have any questions about these definitions or any other terms you\u2019d like explained, just give us a call!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

10 Insurance Terms that Everyone Needs to Know \u00a0Insurance Terms Explained Not everyone speaks the insurance language, so it can be difficult to work with your agent when they say things that don\u2019t make sense. To your agent, they\u2019ve been training and specialized in this area so it\u2019s no big deal, but to the average […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-232","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/posts\/232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/comments?post=232"}],"version-history":[{"count":4,"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/posts\/232\/revisions"}],"predecessor-version":[{"id":514,"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/posts\/232\/revisions\/514"}],"wp:attachment":[{"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/media?parent=232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/categories?post=232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.allins.com\/blog\/wp-json\/wp\/v2\/tags?post=232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}