Learn Insurance Lingo in Less Than 10 Minutes!

Welcome to another exciting insurance article!

If you made it this far your probably like millions of Canadian drivers who have no idea what their insurance broker is talking about when he speaks to you. As a young professional, I try to explain insurance jargon like I explain technology to my parents, slow and simple. In this article I am going to take you through various insurance term words that get used everyday by insurance professional in Canada.

Insurance Broker- An insurance broker is a person who is licensed by RIBO to sell insurance on behalf of several different insurance companies. Brokers work for brokerages, which are offices that sell and maintain policies on behalf of Canadian insurance companies.

Insurance Agent- Insurance Agents work directly for an insurance company. They are licensed by FSCO, and can only sell insurance from the company they work for.

First Party The policyholder is referred to as the first party.

Third Party The third party is the policyholder who you have been in accident with.

Liability Insurance- Liability insurance is what covers your legal expense if you are sued.

Collision Coverage- Collision coverage is what covers the repairs to your vehicle if you cause an accident or are in a weather related accident.

Comprehensive Coverage Comprehensive coverage covers the theft of your vehicle. It also covers your vehicle if it vandalized, set on fire, or damaged by an animal.

All Perils- This is a combination of collision and comprehensive coverage. All perils also covers you if a family member or employee steals your vehicle and damages it in an accident.

Vin Number- The vin number (or Vehicle Identification number) is your cars serial number. It is usually located on the left side of the dashboard, close to the window.

MVR (motor vehicle record)- Is a database containing a driver;s license dates and driving infractions.

Autoplus- Autoplus is a giant database that contains the details and particulars about millions of insurance policies and insurance claims.

Accident Benefits- Is the insurance coverage that covers an insured if they are injured in an accident.

Medical & Rehabilitation- Part of your Accident Benefits. This coverage covers your medical & rehabilitation expenses when you are in an accident.

Income Replacement- Part of your Accident Benefits. This coverage will pay your income if you are unable to work because of an accident.

Attendant Care Part of your Accident Benefits. This coverage will pay for an someone to take care of you if you are unable to take car of yourself because of an auto accident.

Caregiver, Housekeeping & Home Maintenance- Part of your Accident Benefits. This coverage pays for someone to take care of your home if you are unable to due to an accident.

Dependent Care- Part of your Accident Benefits. This coverage pays for someone to take car of your dependents if you are unable to because of an accident.

Death & Funeral- Part of your Accident Benefits. This coverage covers your funeral expenses in the even you are killed in an accident.

Indexation Benefits- Part of your Accident Benefits. This coverage makes it so your coverage adjusts for the rate of inflation if you become permanently disabled due to an accident.

Direct Compensation-Property Damage- This coverage makes it so all claim handling goes through your own insurance company even if your not at fault in an accident.

Finale

If you've gotten this far, you have learned so of the most important terms that are used in insurance. You will notice that most of these insurance terms pertain to auto insurance, and can be found on your application. In case you didn't notice, several of the coverage's fall under accident benefits.

Accident Benefits is the most important coverage on your policy. It is what takes care of you when you've been badly injured. In 2010, the provincial government changed how accident benefits worked on insurance policies. At the time of this change, there was a lot of media attention to educate drivers that they no longer had the same coverage that they once did.

It is very important for you to speak to your provider about these changes and how they can impact your life if you are ever involved in a serious accident.

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Title Post: Learn Insurance Lingo in Less Than 10 Minutes!
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