A clause used in your insurance contract that gives your insurer the right to demand payment for your policy in full, under specific circumstances outlined there. What could cause your insurer to invoke the acceleration clause? A couple of examples would be non-payment of premiums by a certain date or destruction of property.
Actual cash value is the amount you’ll be reimbursed for what the items or damage cost to repair or replace, minus the depreciation. Actual cash value is likely to be different than the replacement cost value.
If you are responsible for a car accident that causes bodily injury to others, bodily injury liability coverage helps pay for the medical expenses of the people (not including you) harmed in the accident. Most states have laws that require you to have bodily injury liability coverage on your car insurance policy.
A binder is a temporary insurance contract that provides proof of coverage until a permanent policy is issued. For example, when you purchase a new vehicle and you need to call your ERIE Agent to bind coverage until you get the official paperwork complete.
Cancellation is the termination of insurance at any time other than the renewal date. Typically, you will be given notice explaining the reason why your policy is being cancelled.
Coinsurance, in property insurance terms, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss. For health insurance, it’s a percentage of each claim above the deductible paid by the policyholder.
Collision coverage helps you cover the costs of repairing or replacing your vehicle after it is damaged in a collision. Most drivers end up paying a deductible, so check your policy or ask your agent to find out what your up-front expense would be. Collision insurance is often required by lenders, but once you own the vehicle, it may be optional. Talk to your agent to find out if collision coverage makes sense for you.
Comprehensive coverage helps you pay for damages caused by theft, fire, vandalism, a falling tree and other things that are covered in your policy. Your auto lender may require you to carry comprehensive on your automobile policy. But once you own the vehicle outright, this coverage is optional.
Coverage is the protection and benefits provided in an insurance contract. Insurance coverage helps consumers recover financially from unexpected events. A trusted insurance agent can help you select the best coverage to suit your needs.
Damage refers to the physical harm to or loss of a person or property.
Your insurance declarations page, also known as the dec page, is customized to you and summarizes the information essential to your insurance coverage. It includes your name and address, effective policy dates, insured property, policy coverages, limits, deductibles, discounts, policy forms and endorsements.You’ll also find your Erie Insurance agent’s contact information on the declarations page.
The deductible is how much money you’ll be paying out of pocket before insurance kicks in. Let’s say you crash your car into a tree, causing $1,200 in damages to your car. Your policy has a $500 deductible. That means you would pay the first $500 toward the repair bill and the insurance company would pay for the remaining $700. Many people opt for higher deductible plans in exchange for lower premiums.
An insurance discount is a reduction in insurance premium determined by several factors. As a customer, you may be eligible for one or more of the discounts we offer. Discounts vary by state.
Emergency road service is available from ERIE as an additional coverage at a low cost. Emergency roadside service is for unexpected events on your insured vehicle that leave the vehicle disabled. (And just in case you need it—here’s the number to reach ERIE’s Roadside Service—800-FOR-ERIE (800-367-3743).
A floater is a separate policy available to cover the value of goods beyond the coverage of a standard renters insurance policy, including movable property such as jewelry or sports equipment.
If you’re paying on a car loan or a lease, your car may be valued for less than what you owe. So, if your car is totaled in an accident, gap insurance helps you pay off your loan or lease, minus the deductible.
Insurance helps protect you from losing money when faced with an unexpected event. By purchasing insurance, the company where insurance is purchased from takes on the risk that is stated in the insurance policy.
Let’s say you caused an accident and were found at fault. Perhaps you rear-ended a car stopped at a traffic light, or perhaps you lost control of your car on an icy road. Your liability will cover the costs of the damage you caused the other vehicles and property, as well as injuries to other people involved in the accident. In most states, liability coverage is mandatory. Property damage liability won’t cover damage to your own vehicle. That’s where collision coverage comes in.
The costs or expenses incurred due to a claim.
A multi-policy discount may be available when you buy more than one insurance policy from the same company. ERIE offers many bundling options that could qualify you for a money saving, multi-policy discount.
The policy is the written agreement between you and the auto insurance company. This document details what is covered by your policy (see: “covered loss”) and what isn’t covered by your policy (see: “exclusions”). It also details what your premium costs are. If you have questions about your policy and what it covers, be sure and talk to your agent.
The premium is the amount you pay to keep your insurance coverage in effect.
Insurance rates are based on what an insurance company believes they’ll need to pay out in claims to provide security for their customers. Every company determines its rates differently based on multiple factors that are highly individualized. An insurance agent can help you compare rates and features to make sure you are getting the best car, home, business or life insurance to meet your needs.
Breakdowns, lockouts, flat tires, dead batteries — these are all situations that can keep you from getting where you need to be. If you add road service protection to your auto insurance policy, help is just a phone call away. With it, you can get a tow, a battery jump, help with your tires, gas delivery and more.
Subrogation protects you and your insurer from paying for losses that aren’t your fault. It allows your insurer to recoup costs from the at-fault party, including your deductible, if the accident wasn’t your fault.
A car is generally considered a total loss when the actual cash value at the time of the loss exceeds the cost of the vehicle’s repair plus its salvage value. Appraisers will estimate the costs of repairs using factors that may differ by state.
A personal umbrella policy provides an extra layer of liability protection. It provides an additional $1 million coverage (up to $5 million available) for you and your eligible family members against lawsuits arising from personal injury or property damage claims.
Let’s say you’re hurt in an automobile accident that was caused by another driver. Ideally, their bodily injury liability policy would have you covered. But what happens if the driver’s policy limits are not high enough to cover the damages to your car, or your injuries? That’s where your underinsured motorist bodily injury coverage kicks in.
Similar to underinsured motorist bodily injury coverage, this coverage comes into play when you’re injured in an auto accident caused by someone else. The difference is that the driver either has no insurance or committed a hit-and-run. Because they were at fault and have no insurance to help cover your medical expenses, uninsured motorist bodily injury coverage protects you from having to pay those expenses out of pocket.
Underwriting is how an insurance company evaluates its risk of insuring a home, car, driver or person. After looking at the risks involved, an insurance underwriter will set the insurance premium that will be charged in exchange for providing coverage.
The vehicle identification number is your car’s serial number. It has 17 characters containing numbers and letters and it’s assigned by the manufacturer. This code reveals information about your car’s make, model and year. You can locate your vehicle’s VIN in a number of places: on the dashboard, printed on the sticker inside your door jamb, on your title documents and on your auto insurance policy.