Terms of Auto Insurance

Do you want to get the auto insurance coverage you desire for your car? One basic way of accomplishing this is by learning the terms pertinent to auto insurance.

The benefits of learning and knowing the terms of auto insurance can not be over-emphasized. It will not only build your basic knowledge, but stand as a key factor to choosing the right insurance policy for your car.


This is the insurance company that underwrite and/or issues insurance policy to policyholders. There are much insurers worldwide and have their own method of operation according to local law, custom and economic level of the state or country at large.

The name carrier is referred to the insurer because it is the insurance company that actually carries the risks for the policyholder.


This refers to the loss or liability resulting from an accident, damage, storm etc. The policyholder can then be compensated for the incurred loss of the car from such incident. This is usually done as a claim and carried out by the adjuster.

Casualty is often one of the major causes of a claim by the policyholder. When there are more casualties there will likely be more claims but when there are few casualties there will most likely be few claims. But this is mainly based on the policyholder’s qualification of the conventional liability coverage.


This is someone who gives a notice to an insurer for an incurred loss. This is usually done for the main purpose of collecting a claim from the carrier to cover or reimburse the incurred loss. Then insured will be covered with the claim as based on the terms and conditions of the insurance company.

In most times the claim may be lost on the event of an incurred loss if the policyholder is no longer an active customer to the insurer. This is to motivate the assured to be regular in paying his premiums as this will be helpful in the event of an incurred loss.

It is reasonable for a claimant to submit a claim for incurred loss coverage as long as he/she is still an active customer of the insurance company. Most often, the insurers do not offer claims to the insured unless on the event of an incurred loss.

Coverage Forms

These are legal documents attached to an insurance policy to put into effect the coverage of the policy as provided by the insurance company.

These forms are really necessary for a good insurance coverage as it will determine the effectiveness of the insurance policy.

The endorsement form shows the legal and coverage status of the policyholder as issued by the insurance company.

Combined Single Limit

As the name suggest, this refers to the amount (limit) of money an insurer, based on the insurance policies, can pay as a liability coverage for both bodily injury and property damage.

The amount of coverage may differ from insurer to insurer as this is based on the insurance terms and conditions as well as the policies of the insurance companies.

It is different from that of the split limit policy where the amount for liability payment limits of property damage and bodily injury are paid separately.


In auto insurance terms this refers to the agreement between two or more parties to achieve a common aim. This can be seen from the agreement between the insurance company and the insured.

This is also evident in the agreement between the insurance company and the agent, with each party offering the interest to the other.

Competitive Estimate

In the auto insurance sphere, this means the request made by an insurer to a policyholder to submit more than one repair estimates to meet his/her needs. This may involve the total estimates of repair involved.

This usually happens when there is an automobile damage resulting in incurred loss which requires some major of repair.

The policyholder should be sincere and accurate in all details which will be filled in the estimate form and later be submitted to the insurance company.

When an insurer request for repair estimate to be submitted the policyholder should comply and do so accordingly without any further delay.

What is the Best Occupation to Get Cheap Auto Insurance?

You probably never thought that choosing a specific job could hurt or help your car insurance rates. Don’t worry, it really never crosses anyone’s mind when they are searching for new employment. However, there are jobs out there that can give you great policies for minimal costs. We’ve gathered some information for you below that should help if you are trying to get that cheap auto insurance.

Going to College to be a Scientist

Listen, we aren’t suggesting you go to college to get cheap auto insurance, but if you are headed that way, anyway you will want to know this regardless. The occupation of being a scientist can lower your rates tremendously. It is not because they have special abilities, got a degree in the field or anything of that nature. The truth is they are cooped up in a building, which means they won’t travel too much, even if around the city.

What a Job Creates

Granted, the scientist thing above is just an example. Then again, there are several jobs out there that can get you lower rates just because of the effect it can have on you. For instance, if you are a Wall Street broker where your day consists of strenuous levels, your rates will be higher. Why? Well, when you leave work for the day your stress levels are soaring through the roof and the chances of you being distracted while driving are much higher.

We are telling you this because in order to get cheap auto insurance based on your occupation, the lower the stress the better off you will be. Another great example of this is if you an attorney of some sort. Constant trips to different courthouses, phone calls galore, and just thinking about a case can dawn a higher premium. It’s hard to believe this is what our records have become, but it is the truth.

People in the Safety Field

This doesn’t necessarily have to be in the insurance field for safety, but just any one in general. Those who spend all day teaching others about safety are more likely to be safer when driving. This gives them an advantage when it comes time to finding cheap auto insurance around the corner. Since they are meticulous in their work, they probably are in other parts of their lives including driving.

Understanding it All

If there was a chance you were confused by anything above, here is an easy way to understand it all. Find yourself a job that isn’t completely relaxing, but one that doesn’t require a lot of stressful situations. Writers, artists, and many others like them are great examples of people who can receive cheap auto insurance. People who work at home in general are good examples. Just take what we’ve given you to heart and you’ll soon realize all the jobs that will pay more or less for car insurance.

Auto Insurance – Is It All The Same

You just purchased a new car and it’s time to get auto insurance. You contact 3 different insurance agents and obtain quotes from 3 different insurance companies. You choose the company with the lowest rate and purchase the policy. You obtained the policy with the least current premium, but did you get the best value for your money?

Auto rates vary by company each year. One year Company A may have the lowest rates, the next year Company B, and the third year Company A has the lowest rates again. Since rates change it is important to purchase your auto insurance based on other factors as well as rates.

First of all, you want to have some knowledge of the company. Ask yourself: Have I heard of the company before? How long have they been in business? What do I know about the company?. It is important to choose a reputable company that has an established history in the area. If a company has been around for many years they must have some financial stability and customer service since they were able to stay in business for so many years. Most companies are proud of their strong history and will tell you about it. One thing to watch for is a company that is new to the area. Often times a new company will move into an area and offer low rates to establish itself in the market place and then it will need to raise rates to become profitable. In the end, their rates will be similar to rates of the well established companies.

Second, you should get to know the agent that is selling you the policy. You can tell much by viewing the agent’s office. Does the agent have stacks of files spread throughout the office or is the office neatly organized? The appearance of the office will reflect the agent and his or her attention to detail. The agent is your first person of contact with the insurance company and it is important to know that they are knowledgeable and can be trusted to make sure you are properly insured. You will want to find out about the other people in the office as well. You may need to report a claim or make a change to your policy and it is important to know that there will always be someone knowledgeable in the office to help you.

Third, you should ask about the claims service of the company. This is an area of insurance that consumers often overlook, but it is very important. When you purchase an insurance policy, you are receiving a promise from the insurance company that if you have a claim, it will be handled fairly according to the policy contract. Ask if the company handles their own claims or if they hire an independent company to handle claims. A company that has its own adjusting staff is usually better prepared for claims and provides a higher level of customer service. It is also nice to know the location of the claims staff so you know if you will be dealing with someone locally and how promptly they will handle your claim. A company will take pride in having a knowledgeable and fair claims department.

Fourth, you want the proper coverage for your situation. It is best to sit down with the agent and review the sections of the policy to make sure you know what you are buying and that it fits your needs. The liability coverage is the most important section of the auto policy. You want to be sure that you have the proper protection if you are at fault in an accident and responsible for injuries or damages to another party. If price is an issue, it is a good idea to raise the comprehensive and collision deductibles so that you can have adequate liability limits.

Remember that not all auto insurance is the same. Over many years the rates of Company A will average out to be similar to rates of Company B, so rates should not be the only basis for purchasing auto insurance from a company. It is important to make sure you are receiving value for what you are purchasing. To receive value you need to know that the company is financially sound to pay for losses and that it has the ability to fairly handle claims per the auto policy. You are placing trust in the agent that you are purchasing the policy from so it is important to be familiar with the agent and how they operate their office. Once you have the proper insurance, have fun with that new car and drive safely!

What Nevada Drivers Need to Know About the Cost of Auto Insurance

Like many other states, Nevada has seen an improvement in road safety over the past several years. Fewer people are dying on the roads, which is good news all around. In fact, between 2004 and 2008 the traffic fatality rate dropped by 18%. Nevertheless, traffic crashes happen and when they do, having the right auto insurance will be critical. Let’s look at the type of auto insurance you need in Nevada and how you can save money on your policy.

Nevada drivers are required to have insurance coverage for bodily injury liability of at least $15,000 per person / $30,000 per accident, as well as $10,000 property damage liability. Realistically, these coverage levels are too low to give you the type of security you expect from insurance. The damages from any crash more serious than a fender bender are likely to exceed these limits. You could be liable for the amount not covered by insurance if you’re found to be at fault in the crash.

Instead of purchasing the minimum insurance, Nevada drivers commonly buy coverage of $100,000 per person / $300,000 per accident for bodily injury liability, $50,000 for property damage liability, $50,000 / $30,000 for uninsured motorist bodily injury, $5,000 for medical payments, a $500 deductible for collision, and a $100 deductible for comprehensive.

Even when you buy this amount of insurance, you can find a better price if you’re willing to shop around. You should try to get at least three quotes from different insurers. You may call a company directly or look it up on the Internet to get this information. The process takes a little time but it’s well worth your attention.

Let’s say a driver lives in Las Vegas, owns a Toyota RAV4, and wants to buy the type of complete coverage that was talked about earlier. Here are a few scenarios that show the range of premiums that different types of drivers might pay, based on a recent survey done by the Nevada Division of Insurance.

A 24-year-old divorced female with a clean driving record drives 10 miles round trip to work each day, with an annual mileage of 4,500. She has had no insurance for past 30 days. This driver could pay anywhere from $752 to $6,846 for a six-month premium.

A 45-year-old single male drives 10 miles round trip to work each day, with an annual mileage of 4,500. He has a DUI on his record, his first offense within past two years. This driver will find that some insurers won’t even sell him a policy. When he does find a company that will insure him, he could pay anywhere from $897 to $6,132 for a six-month premium.

A husband and wife are both 40 years old and have clean driving records. Each person drives a 30-mile round trip to work daily, with an annual mileage of 12,000 on each vehicle. They get a multi-car discount from the insurer. In this situation, the husband would pay between $452 and $2,682 for a six-month premium.

A 71-year-old married, retired female has a clean driving record and a husband who doesn’t drive. She uses the vehicle for pleasure use only and has an annual mileage of 4,000. She has completed an approved driver safety course and is rated as having the best possible credit-based insurance score. This driver could pay anywhere from $422 to $2,675 for a six-month premium. To an insurance company, she represents one of the lowest risks for making a claim. Every insurer wishes they had more customers like her.

As a Nevada driver, you owe it to yourself to do some comparison shopping. You can save literally thousands of dollars a year by taking this one simple step. But don’t choose Nevada auto insurance based on price alone. Make sure you are buying your policy from a company that is financially stable and highly rated. That way, you’ll be able to count on your auto insurance being there when you need it.