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Determining your particular coverage needs or filing an insurance claim can be challenging if you don’t understand the jargon. You want to answer your adjuster’s questions accurately. If you’re not sure, don’t worry; the friendly team at Chanler Agency in Geneseo and Livonia, NY, will help. They can answer all of your questions regarding both personal and business insurance. Below, they share a few key terms worth knowing to get you started.

5 Common Insurance Terms

1. ACV

ACV stands for actual cash value and refers to the value of the lost, stolen, or damaged property at the time of the incident. ACV is often compared to RC, or replacement cost, which is the actual cost of replacing damaged property with a suitable substitute.

2. Comprehensive Coverage

A comprehensive insurance policy might be one that includes property damage, liability, and bodily injury. However, comprehensive coverage, in regard to auto insurance, refers to a specific kind of policy; it will cover damages a vehicle sustains in scenarios other than a collision. For example, it might reimburse policyholders for damages caused by theft, natural disasters, falling objects, or animals.

3. No-Fault

insuranceNew York is a no-fault insurance state, which means motorists must turn to their own providers for compensation following a collision, regardless of who might have caused the accident.

4. Gap

If you purchase a brand new vehicle and get into a collision on your way home from the dealership, the insurance company is only going to reimburse you for the vehicle’s “Kelley Blue Book” value, which is probably at least a few thousand dollars less than what you just paid for the car. Fortunately, gap insurance can save the day. A gap policy will cover the difference between what a new car is worth according to the insurance adjuster and what you owe on the vehicle.

5. Deductible

A deductible refers to your own financial responsibility following a qualifying incident that your policy will cover. For example, car insurance deductibles typically range from $0 to $1,500. If your deductible is $1,000 and you are in an accident that causes $800 in property damage, you must cover the total cost of repairs out of pocket. Insurance policies will not pay until you have covered the deductible. A higher deductible means lower premiums, whereas a lower deductible will result in a higher monthly payment.

If you want to learn more about insurance coverage or the claims process, turn to Chanler Agency in Livingston County. This family-owned insurance agency has been proudly serving clients throughout western New York since 1973. Visit them online to get an instant quote, or call (585) 243-5520 to discuss your coverage needs today. 

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