IWSTI.com: Subaru WRX STI Forums - View Single Post - Insurance Discussion / FAQ --- What you need to know

***Kevin*** · 10-03-2007, 11:30 AM

I read my policy and I came across the following terms, can you tell me what they mean?

Auto Insurance Score - What the insurance industry calls "credit scores" are actually "insurance risk scores." Both scores are based on information contained in your full credit report, but they put weight on different factors in order to calculate a final score. Thus, even if you purchase your credit score from one of the major credit-reporting agencies, you still don't know your "insurance risk score," which is not available to you.

Binder - An agreement executed by an agent or insurer putting insurance into force before the contract has been written or the premium paid.

Declarations page (aka “DECS PAGE) – Usually the 1st page within your policy. On this page it will outline all the major information within the policy: what is covered, rates (premiums per vehicle), policy number, term, name and address of insured, end date, effective date, loss payee, info about the auto, endorsements and premium.

Deductible amount – The portion of an insured loss to be paid by the insured before a recovery may be made from the insurer.

Discount – A driver may be eligible for discounts if he/she hits certain marks of performance. Ie: good driver (prop 103 in California) - 20% lower premium.

Good Driver Discount – Based on driving record, number of miles driven per year, and years of driving experience. To qualify, drivers may not have been involved in any of the following in the last 3 years: more than 1 violation, principally at fault in an accident which caused bodily injury or death, convicted of a DUI under age 18, more than 1 dismissal of a traffic citation.

Emergency road service – This coverage is offered as an add-on. It offers services to the insured at the time of a vehicle failure or malfunction. Similar to AAA.

Exclusion – A provision in the contract that denies coverage for certain perils, personal property or locations.

Gap Insurance – Gap coverage is usually provided by an endorsement that covers the different between the amount owed for a vehicle and its actual amount an insurer will pay if it is stolen or determined to be a total loss. This type of coverage should be considered by anyone purchasing or leasing an expensive or classic auto.

High-risk driver – A classification given to a driver usually based on age or driving record.

Limits – The total amount of benefits payable for a given situation or occurrence.

Medical payments coverage – Covers reasonable medical and funeral expenses for bodily injuries caused by an automobile accident and sustained by the inured driver, family members and any passengers. It is not liability insurance.

Personal injury protection – Similar to “no fault” insurance. It will cover the insured and passengers and any other persons injured due to the fault of the insured.

Premium – The price of insurance protection for a specific risk for a specific period of time.

Rental Reimbursement – Added by an endorsement the insurer will pa, in addition to physical damage coverage, up to a set amount per day for: Transportation expenses incurred because of physical damage to the insured auto.

Surcharge – An added charge that the insured is responsible to pay. Usually due to, but not limited to, driving record.

Underinsured driver - Someone who is at fault in an accident that has the minimum limits of liability required by the state, but the amounts are insufficient to cover all losses.

Uninsured driver or motorist – A person without insurance. Someone who is an insolvent insurer. The driver of a hit and run vehicle.

10-03-2007, 11:30 AM	#3
*Kevin* Admin Car: 2008 Aspen White STI Fav Mod: The Driver Location: Southern California Posts: 12,712 IWSTI Addict since: Jan 2001 Trader Rating: (1)	Re: Insurance FAQ I read my policy and I came across the following terms, can you tell me what they mean? Auto Insurance Score - What the insurance industry calls "credit scores" are actually "insurance risk scores." Both scores are based on information contained in your full credit report, but they put weight on different factors in order to calculate a final score. Thus, even if you purchase your credit score from one of the major credit-reporting agencies, you still don't know your "insurance risk score," which is not available to you. Binder - An agreement executed by an agent or insurer putting insurance into force before the contract has been written or the premium paid. Declarations page (aka “DECS PAGE) – Usually the 1st page within your policy. On this page it will outline all the major information within the policy: what is covered, rates (premiums per vehicle), policy number, term, name and address of insured, end date, effective date, loss payee, info about the auto, endorsements and premium. Deductible amount – The portion of an insured loss to be paid by the insured before a recovery may be made from the insurer. Discount – A driver may be eligible for discounts if he/she hits certain marks of performance. Ie: good driver (prop 103 in California) - 20% lower premium. Good Driver Discount – Based on driving record, number of miles driven per year, and years of driving experience. To qualify, drivers may not have been involved in any of the following in the last 3 years: more than 1 violation, principally at fault in an accident which caused bodily injury or death, convicted of a DUI under age 18, more than 1 dismissal of a traffic citation. Emergency road service – This coverage is offered as an add-on. It offers services to the insured at the time of a vehicle failure or malfunction. Similar to AAA. Exclusion – A provision in the contract that denies coverage for certain perils, personal property or locations. Gap Insurance – Gap coverage is usually provided by an endorsement that covers the different between the amount owed for a vehicle and its actual amount an insurer will pay if it is stolen or determined to be a total loss. This type of coverage should be considered by anyone purchasing or leasing an expensive or classic auto. High-risk driver – A classification given to a driver usually based on age or driving record. Limits – The total amount of benefits payable for a given situation or occurrence. Medical payments coverage – Covers reasonable medical and funeral expenses for bodily injuries caused by an automobile accident and sustained by the inured driver, family members and any passengers. It is not liability insurance. Personal injury protection – Similar to “no fault” insurance. It will cover the insured and passengers and any other persons injured due to the fault of the insured. Premium – The price of insurance protection for a specific risk for a specific period of time. Rental Reimbursement – Added by an endorsement the insurer will pa, in addition to physical damage coverage, up to a set amount per day for: Transportation expenses incurred because of physical damage to the insured auto. Surcharge – An added charge that the insured is responsible to pay. Usually due to, but not limited to, driving record. Underinsured driver - Someone who is at fault in an accident that has the minimum limits of liability required by the state, but the amounts are insufficient to cover all losses. Uninsured driver or motorist – A person without insurance. Someone who is an insolvent insurer. The driver of a hit and run vehicle.