Auto Insurance
When interpreting for Auto Insurance Scenarios, it is incredibly important to pay attention to detail, which means taking notes on numbers, company and people's names, car types, etc. Be ready to take notes as soon as this scenario begins!
Auto Insurance Terminology
Liability Insurance - Pays for whatever damage you cause
Comprehensive coverage - Pays for any damage to your car caused by something other than an accident (weather)
Collision coverage - Pays for the cost of repairs of your car if the accident is your fault
Deductible - Amount of money you agree to spend to get your car repaired
Uninsured Motorist - If you get hit by someone without insurance, your car insurance pays the bill
Underinsured Motorist - An individual who has insurance but not enough to pay the bill, your car insurance will pay the balance
Towing Insurance - You pay the bill, car insurance will reimburse you
Premium - Money you spend on car insurance
Required by state -Liability
Depreciation - Loss of monetary value of any object
Blue Book - New and used cars guide
Medical Payment - Immediate Medical attention for you and your passengers
Collision & Comprehensive - The insurances you could drop if your car is not worth much
Luxury car - Most expensive, most comfortable
MSRP - The manufacturer's suggested retail price (sticker price)
Limited warranty - Replacement parts for the product may be included but not the cost of labor.
Lemon car - Car that repeatedly fails to meet standards of quality and performance
Leased Car - Renting use of a vehicle by making specified payments over a stated period of time.
Full coverage insurance - When having a loan on a car this type of insurance is required
Subrogation - The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.
The Insurance Commissioner - Regulatory agency; serves as a liaison between patient/ carrier/ provider.
Automotive Inspection and Registration - requires automobile insurance
Underwriting - process through which the company investigates whether or not a risk is worth taking.
Underwriter - A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Adjuster - A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
Appraiser - An independent person trained to provide an unbiased estimate of value.
Preferred Risk - usually someone who has not had any accidents (or maybe one no-fault) or not more than one or two traffic infractions in their driving history. Amount of the premium paid will be lower.
High risk - someone who exceeds the requirements of a preferred risk. Amount of the premium paid will be higher.
Assigned Risk policies - Pool in which drivers who are determined to be too high a risk fit under. If a driver falls under the Assigned Risk label, that driver will have to pay extremely high premiums to drive.
SR-22 - form of liability insurance on a driver's license that allows the department to monitor the insurance of a suspended or revoked driver record through info received from the driver's insurance company.
Tow yard / Salvage yard - a holding place for cars until they are placed back in the control of the owner, recycled for their metal, stripped of their parts at a wrecking yard or auctioned off for the benefit of the impounding agency.
Gap Insurance - covers the difference between what you owe on a car and what the insurance company says it is worth
At fault - This means that you caused the accident to take place, either through an act of your own, such as accelerating into another vehicle or by failing to take an action.
Payout - money that is paid to someone
Settlement offer - Amount offered to settle a claim.
Salvage title - A form of vehicle title branding, which notes that the vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it.
Salvage Value (Residual Value) - amount that a scrap yard will pay for the vehicle
Car parts and Accident Report Terminology
Quizlet Resource: Car Insurance Terminology