Declaration page—is is usually
the rst page of an insurance policy.
It lists the full legal name of your
insurance company, the amount and
types of coverage, the deductibles,
and the insured vehicle(s).
Deductible—e amount of the
loss that you must pay before your
insurance company pays anything.
Only comprehensive and collision
coverage have deductibles.
Endorsement/rider—A written
statement that changes the coverage
or details of an insurance policy.
Exclusion—ese are the specic
things that your insurance policy
does not cover or limits coverage
for. For example, your policy may
not cover certain kinds of dangers,
people, property, or locations.
Insured—e person who can le
a claim in case of an accident or loss.
Also called the policyholder.
Insurer—e company that issues
your insurance.
Liability coverage—Insurance
that helps pay for the injuries and
damages from accidents that are
your fault.
Licenses (broker’s, agent’s, or
insurance company’s)—
A certicate of authority issued by the
Department of Insurance to a broker,
agent, or insurance company to do
insurance business in California.
Limit—e most money that your
insurance company will pay for your
loss.
Gap coverage—is pays the
dierence between the fair market
value of your new car and the balance
you owe on your loan or lease.
Medical payments coverage—Pays
limited medical costs for you or
others in your car, when you are in
an accident.
Non-renewal—When you or your
insurance company does not renew
your policy at the end of its term.
Policy—Your contract with the
insurance company. It explains your
coverage. It also states the rights and
duties of both you and the insurance
company.
Premium—e amount you pay to
buy an insurance policy.
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