Del Toro Insurance, Miami FL

Many of the terms used in the insurance business can be confusing. To help you understand some of these terms a little better, we have presented a glossary for you to browse. Please understand that specific terms and conditions apply to every insurance policy, and these terms and conditions may limit the coverage available for any given accident or loss - they may even modify the meaning of some of the terms listed here. It is very important for you to note that the precise coverage afforded is subject to applicable underwriting guidelines and to the terms, conditions and exclusions of the policies issued.

ALL - A - B - C - D - E - F - G - H - I - J - K - L - M - N - O
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Actual cash value - When a vehicle is damaged so severely that it becomes more costly to repair than the vehicle is worth, it is "totalled". The value that is placed on the vehicle is its worth just before the accident took place. There are several databases that value used vehicles for this purpose, taking into account excess or light mileage, body condition, prior damage, engine condition, etc. This valuation results in the "actual cash value" of the vehicle in the marketplace.

Additional equipment coverage - This provides coverage for optional equipment added to the vehicle by other than the original manufacturer. Examples: upgraded stereo, car phone, special paint, special tires, etc.

Additional Interest - A person or company other than the named insured or listed driver who is protected under the insurance policy.

After-market parts - In case of damage to an insured vehicle, there are several alternatives for purchasing replacement parts. One of these options is "after-market" parts, where companies that are not vehicle-makers manufacture common parts for popular vehicles. This fairly recent development has served to offer the competition necessary to force the vehicle manufacturers to lower their prices on those parts. There is a governing body to assess and assure the quality of these parts.

Agent - A person who represents one or more insurance companies in selling insurance to consumers.

Application Form - A questionnaire to be filled in by the person seeking insurance, used to determine the insurance coverage to be afforded, as well as the acceptability of the insurance risk and the correct premium.

Automobile Insurance Plans - government sponsored (but industry managed) plans providing auto insurance for those that cannot obtain coverage in the voluntary market. Sometimes called the Assigned Risk Plan.

Assigned Risk - A driver or owner who cannot qualify for insurance in the regular market. He/she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of high risk applicants. Premiums are usually higher and coverage is restricted.

Automobile insurance - Insurance against loss to the insured due to damage to or destruction of automobiles, or due to claims for damages arising from the ownership, maintenance, or use of automobiles; also, loss to persons insured in certain specific ways due to cost of medical, surgical or hospital care necessitated by automobile accidents.