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Insurance Information & Glossary Of Insurance Terms

Las Vegas accidents are often covered by insurance. There are many complex issues surrounding insurance coverage. Also, there are many insurance terms you may not be familiar with. This page will give you insurance information and a glossary of insurance terms. Click below for either section.

Insurance Information Glossary Of Insurance Terms


Las Vegas Insurance Information

Las Vegas Automobile Insurance Defined

Automobile insurance is simply a contract that helps pay for certain types of financial losses or obligations resulting from the use or ownership of an automobile. To obtain this contract (insurance policy), you pay a specified amount of money called a premium. In return for the premium paid, the insurance company agrees to pay certain expenses and legal liabilities depending on the terms of the insurance policy. Having the right insurance coverage may prevent you from suffering a large financial loss in the event of an automobile accident.

Nevada's Financial Responsibility Laws

Automobile drivers in Las Vegas must comply with Nevada's compulsory financial responsibility law. It is mandatory that every driver in Nevada must have automobile liability insurance coverage. The minimum amounts to satisfy Nevada's financial responsibility law are:

Bodily Injury
  • $15,000 for death or injury of any one person, any one accident
  • $30,000 for all persons in any one accident
Property Damage
  • $10,000 for any one accident
Types Of Coverages Available In Las Vegas, Nevada

Insurance companies in Nevada must offer the following coverage with every automobile policy:
  • Uninsured /Underinsured Motorist
    Provides liability insurance when the party at fault does not have the state required minimum liability coverage, or the minimum liability coverage is insufficient to cover the injuries sustained in the accident. Likewise, uninsured motorist property damage covers possible reimbursement for damages your car sustains (BI and PD).
Most insurance companies will also offer the following optional coverages:
  • Medical Payments (MedPay)
    Provides for the payment of medical and similar expenses without regard for liability.


  • Physical Damage (collision and comprehensive)
    Neither of these cover mechanical breakdown or normal wear and tear. Collision covers damage to your vehicle caused by collision with another vehicle or with any other object, regardless of fault. Collision insurance covers vehicle upset (overturn), but does not cover bodily injury or property damage liability. Comprehensive coverage covers damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, vandalism, etc.


  • Endorsements/Riders
    Special equipment (i.e. after-market additions such as premium stereos, tires, and other misc. equipment), towing, and rental reimbursement.
Information You Need To Have Ready When You Get A Quote

You need to know what coverages you want, what limits of liability you require, and what deductibles you desire. Also, you need to have the following basic information available on all drivers in your household: All driversí names, ages, sex, and marital status; driving record (accidents and moving violations); annual mileage; and the following information on all cars: full vehicle identification number (VIN), year of vehicle, cost of vehicle and any special equipment.

Things To Keep In Mind About Auto Insurance

  • Inquire about discounts (such as multi-car, airbags, anti-theft device, etc.) and/or surcharges the company applies. All companies will not offer the same type of plans, nor have the same underwriting rules (eligibility/acceptability guidelines). Therefore, it is critical to ask for this information.


  • Make sure you know the length of the policy term. This can be one month, six months (semi-annual) or one year (annual), depending on the insurance company.


  • Many companies have their own payment (installment) plans which allow you to pay the premium over a period of time for a service fee. If you decide to buy a policy on an installment plan, find out the applicable finance or service charges. If you use a premium finance company to pay for your insurance, the monthly payments may be easier, but the total of payments will be larger. Moreover, if the policy is cancelled, the insurance company must remit all return premiums to the finance company, who will apply them to your account.


  • Check to see if you are responsible for paying any up front fees. Sometimes insurance companies charge policy issuance fees. Once the policy is issued, this fee is generally fully earned. If the policy is canceled later, the fee will not be returned.


  • Ask about higher deductibles. By requesting higher deductibles on comprehensive and collision coverage, you can lower your costs. However, remember that the deductible you choose iswhat you are responsible for paying up front in the event you file a claim against your automobile insurance policy.


  • Should you drop comprehensive and/or collision coverage on an older car? It may not be cost-effective to have comprehensive or collision coverage on cars worth less than $1,000 because any claim you make would not substantially exceed the annual premium cost and deductible amounts.


  • Review the territorial provisions of your policy with respect to driving in Canada and Mexico. Generally, Mexico does not recognize liability insurance issued in California. If you are involved in an accident in Mexico, you are subject to Mexican legal requirements. Therefore, it is strongly recommended that Mexican insurance be purchased prior to entering that country. Some California issued policies do extend limited physical damage (comprehensive and collision) coverage on vehicles for a limited distance while operating in Mexico.


  • Most automobile insurance policies provide coverage for other licensed drivers to drive your vehicle on an occasional basis. As coverage can extend differently to you as compared with an occasional driver, it is critical to read and understand your policy terms and provisions before allowing others to drive your vehicle. Check with your agent/broker or company for the details. It is a common practice for insurance companies to exclude a driver from your policy for a variety of legitimate reasons under the law. Such driver exclusions must be stated in the policy or by endorsement. Be aware of all policy driver restrictions.


  • If you anticipate acquiring a new, replacement, or additional vehicle, contact your agent/broker or company prior to taking possession. It is necessary to determine what coverage will be extended and what coverage will have to be added to your existing policy. If the new vehicle is financed, also check with the lender for their insurance requirements.


  • When renting a vehicle, the automobile rental companies hold the renter responsible under the rental agreement for damage to their vehicle. They normally offer a Damage Waiver at an additional cost. This is not insurance, but a contractual agreement between the renter and rental company. Therefore, if a waiver is not purchased, review your own automobile policy to determine if any extension of coverage applies. Also, determine how the liability coverage afforded by your policy applies in the event you are at fault in an accident with the rented vehicle.


  • Personal effects and equipment such as cellular telephones, compact discs, tape players, and recorders that are not permanently installed in the vehicle by the manufacturer generally are not covered, unless specifically declared and added to the policy.


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Glossary Of Insurance Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

Select the first letter of the word to go to the definition.


A

Adjuster:
A person who evaluates the damage caused by an accident or other covered loss and determines the amount to be paid.

Agent:
An insurance sales person. a) An independent agent does not work for any insurance company and sells the policies of more than one insurer; b) an exclusive agent sells the policies of only one insurance company.

Arson:
The willful and malicious burning of, or attempt to burn, any structure or other property, often with criminal or fraudulent intent.

Assigned Risk:
A risk which is not ordinarily acceptable to insurers and is, assigned to an insurer participating in an assigned risk pool or plan. Each participating company agrees to accept its share of these risks.

Automobile Insurance:
A type of insurance which protects the insured against losses involving automobiles. Different coverages can be purchased depending on the needs and wants of the insured, e.g., the liability coverages of Bodily Injury Liability, Property Damage Liability, and Medical Payments; and the physical damage coverages of Comprehensive and Collision.

Automobile Physical Damage Insurance:
Coverage to pay for damage to or loss or policyholder's automobile resulting from collision, fire, theft or other perils.

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B

Binder:
A temporary written or oral insurance contract which is effective until it is replaced by a regular policy.

Broker:
A person who for payment of a fee (paid by you) procures insurance on your behalf.

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C

Cancellation:
The termination of an insurance policy before its normal expiration date.

Catastrophe:
In insurance, a term applied to an incident or series of related incidents causing insured property losses totaling more than $5 million.

Claim:
A person's request for payment by an insurer for a loss covered under a policy. Your claims to your company are "first-party claim." Claims made by one person against another person's company are known as "third-party claims."

Claimant:
A person who files a claim with an insurance company.

Collision Coverage:
Optional insurance which pays for damage to your automobile caused by collision with another automobile or object, or by rolling the car over. Frequently required if you have a car loan.

Commission:
That portion of the premium paid to the agent as compensation for his or her services.

Commissioner of Insurance:
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Comparative Negligence:
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

Comprehensive Coverage:
Optional insurance which pays for damage to your automobile caused by things other than collision or rolling the car over such as fire, theft, vandalism, flood or hail. This is frequently required if you have an automobile loan.

Compulsory Insurance:
Any form of insurance which is required by law.

Conditions:
Part of an insurance policy which states your obligations and those of your insurance company in order for the policy to be in effect.

Coverage:
The scope of protection provided under a contract of insurance; any of several risks covered by a policy.

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D

Declarations (Dec) Page:
The front page of your policy is called the Declarations page. It contains useful information such as: the exact name of your insurance company - the policy number - your coverages and premiums your deductibles, if applicable the vehicles insured - their identification numbers - and the classifications for rating purposes.

Deductible:
The amount which you agree to pay, per claim or per accident. This is subtracted from the total amount paid by your insurer. If the claim is $500 and you deductible is $100, you pay $100 and your insurance company will pay $400. The higher the deductible, the lower your premium will be for the policy

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E

Exclusions:
Provisions that explicitly limit the coverage provided by a policy.

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F


No entry at this time.

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G


No entry at this time.

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H


No entry at this time.

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I

Insurance:
A system under which individuals, businesses and other organizations or entities, in exchange for a payment of a sum of money (a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions.

Insurance Company:
A company which, in exchange for a fee (known as a premium), agrees to pay all legitimate claims that may arise under your policy.

Insurance Department:
Enforces rules for the insurance business in each state. Source of information about all types of insurance; also handles consumer inquiries and complaints.

Insured:
Person or organization covered by an insurance policy.

Insurer:
The provider of insurance, such as an insurance company or other organization.

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J


No entries at this time.

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K


No entries at this time.

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L

Liability Coverage:
Insurance which pays the losses of other people, which you caused unintentionally or through negligence.

Liability Limits:
The largest amount of money an insurer will pay in case of a covered loss.

Loss:
The basis on which an insurance claim is submitted and/or paid.

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M

Medical Payments Coverage (Med Pay):
A form of insurance that pays for medical expenses regardless of liability.

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N

Negligence:
Failure to exercise a generally acceptable level of care and caution.

Nonrenewal:
The termination of an insurance policy at its normal expiration date.

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O


No entries at this time.

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P

Policy:
A contract of insurance.

Policyholder:
The person who buys insurance.

Policy Period:
The amount of time an insurance contract (policy) lasts.

Premium:
The amount you pay for insurance coverage.

Private Passenger Automobile:
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

Pro Rata Cancellation:
Cancellation of the policy by the insurance company. All unearned premium is returned to the insured.

Proof of Loss:
Documents that you give to the insurer to support your request for payment of losses. The company uses these documents to determine whether and how much it will pay. (Ex.: Police report and written repair estimates from automobile body shops.)

Provisions:
A list of actions a policyholder must take in order to make an insurance claim. Included in provisions can be additional specifications of the insurer's responsibility to the insured.

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Q

Quote:
An estimate of the cost of insurance based on information supplied to the insurance company.

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R

Rate:
The pricing factor upon which the insurance buyer's premium is based.

Replacement Cost:
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

Risk:
The chance of loss.

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S

Salvage:
Property taken over by an insurer to reduce its loss.

Short Rate Cancellation:
Cancellation of an insurance policy by the insured. Return premium is calculated on a short rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses.

Subrogation:
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.

Substandard:
A greater than normal risk to an insurer.

Surcharge:
An additional charge allowed when a company pays a claim on your behalf.

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T


No entries at this time.

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U

Underinsured Motorist Coverage:
A form of insurance which provides coverage when the liability coverage of the at-fault party is inadequate to cover the amount of damages or injuries.

Underwriting:
The process of selecting risks for insurance and determining in what amounts and in what terms the insurance company will accept the risk.

Uninsured Motorist Coverage:
A form of insurance which covers the policyholder and family members if injured by a motorist who carries no liability insurance, assuming the other driver is at fault, or if injured by a hit and run motorist.

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V


No entries at this time.

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W


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X


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Y


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Z


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