Car Insurance Terms - Part 3
Financial Ratings
Ratings, similar to credit ratings, of insurance providers meant to accurately
represent a carrier's ability to meet claims. Often mentioned ratings are by
agencies such as Standard and Poor's and AM Best.
Financial Responsibility Filing (SR22)
A requirement by a state regulatory entity (usually the state Motor Vehicle
Department) for an insurance company to certify on a driver's behalf that the
driver has the ability to pay future claims up to the state required limit. The
certification is done by means of a form called an SR-22.
Financial Responsibility Laws
State laws requiring drivers to maintain enough insurance to cover accidental
losses to others. Law and limits vary state-by-state.
First Party Benefits
Often also know as Personal Injury Protection (PIP) or Medical Coverage, this
policy pays for physical injuries sustained by the occupants of your car in the
event of any accident, regardless of who was at fault. This is generally not a
good deal, as a good health insurance policy would cover these injuries anyway.
Gap Auto Insurance
A gap car insurance policy insures you for the difference between what you owe
on your car and what your insurance company says it's worth. Often required when
buying or leasing a new car.
Garage Address
Where you park your car at night.
Good Driver Discount
Better insurance companies offer discounts to customers with good driving
records. If you have a good driving record, get a quick quote from Electric
Insurance or find the car insurance providers in your state.
Good Student Discount
A discount which sometimes applies to teen car insurance when the driver
maintains at least a "B" average at school.
ID (Identification) Card
A document identifying you as having liability coverage for the vehicle that you
are driving. Liability insurance is required in most states.
Installment Fee
A fee often required if you prefer to spread your payments over time.
Insured Person
The person(s) insured under a policy contract. (Same as a covered person.)
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Car Insurance Terms - Part 4