Auto Insurance Terms

Auto insurance companies try in the best of their abilities to supply sustainable, efficient, quality, and affordable policy coverage to their policyholders. They also aim at increasing the savings of their insured to meet specific needs e.g. building a big collection of policyholders.

  • Actuary

This is a specialist who computes premiums and risks of insurance. They are duly involved in the calculation of loss reserving, life expectancy and determining accident frequency. They serve as one of the key ingredients in an insurance company. They also primarily help in making profit and financial stability of carriers which they serve and involved in trends assessment as well as determining insurance prices.

These specialists also have a share in managing the carrier’s expenditure and the giving of claims to claimant on any needed basis. They help in ensuring that neither the carrier nor the insured suffer unnecessary loss.

  • Accident Frequency

This refers to the number of times there occur an accident. The frequency is calculated during the time of the insurance policy. The actuary normally computes the frequency of accidents to help determine possible losses. It should be noted that the phrase may not actually mean the number of times or frequency an accident really does occur but the number of times an accident may occur due to the prediction of the actuary. Premiums can also be accurately and appropriately paid using this principle.

  • Appraisal

It is a formally written document of the estimation of the value of property of the insured. This is done as against any future casualty resulting in the loss of property. When an appraisal is eventually damaged, it can be completed or replaced by the adjuster of the insurance company or sometimes a vehicle repair expert.

  • Additional Insured

It is an individual or organization who also has an auto insurance protection under the primary name insured auto policy. The protection may be extended form an auto leasing company to an individual who lends a cars to the primary insured. In the event of an accident, damage or collision, the leasing person or company has protection against the specific casualty caused by the name insured.

  • Agent

He is a licensed insurance representative who sells insurance for an insurance company, negotiating and/or effecting insurance contracts. He serves as the middle man in providing quality insurance service to the policyholder. Insurance agents usually carry out their work on a commission basis and in most cases they are non-exclusive or perhaps exclusive agents.

  • Agreed Price

This is the cost of repairs of damage to property as agreed upon by the adjuster and the corresponding representative of the body shop. Whenever an incurred loss occurs resulting in an accident to a car, the cost of repair agreed on will be used as a claim to the claimant. The cost neither increase nor decrease as the price for any resulting damage for the car has already been agreed upon.

  • Agreed Value

This is the value of the vehicle agreed on by the insured and the insurer which will be paid out on the event of an accident or any other form of unforeseen damage. It is a policy available mainly for custom vehicles or collectible which actual value remains the same over time without depreciating.