As is often the case with any type of insurance, the world of Collision Repair Insurance can be confusing from the uninitiated. That’s why we have put together a list of seven terms that will help you make sense of this useful type of insurance.
Essential Collision Insurance Terms
Actual Cash Value
This is the value of your car at the moment it was stolen or damaged. Your insurance company will review your car (interior, body, tires, etc.) to determine what was its pre-accident condition. Then they will get quotations for cars with similar characteristics in your area to establish the Actual Cash Value of your vehicle. Remember: It’s important that this value is determined and agreed before you release your car to a body shop/
This is an employee of your insurance company whose job is to review claims made by policyholders. They recommend the amount to pay based on the conditions on the vehicle and the coverage provided by each specific policy.
Unlike most vehicles, collectible or antique cars don’t depreciate over time. On the contrary: they tend to become more valuable. In this case you and your insurance company decide to use an agreed-upon value instead of Actual Cash Value (see above) in the event of a total loss.
Bodily Injury Liability
If you cause an accident, this type of coverage helps pay for the medical expenses of the other person, according to the limits of your policy. Additionally, you may also get help paying for your legal fees.
This is the amount of money you pay out of pocket should you suffer a covered incident. Once you have paid your deductible, the insurance company pays the rest, up to the limits stipulated in your policy. As a general rule, choosing a higher deductible when you purchase insurance translates into lower premiums. However, it’s important to make sure that you choose a deductible you know you would be able to pay.
Paintless Dent Removal
This is a to repair damage to your car’s body that hasn’t cracked or chipped the paint. An expert gets access to the area from behind (removing body panels if necessary) and massages the dent starting from the outer edges until the area is back to its usual condition. You can learn more about our Paintless Dent Removal services here.
These are parts salvaged from other cars. Salvage parts usually include large body assembles such as complete front ends.Your insurance company may use different terms to refer to these parts, including “Salvage”, “Used”, “Recycled” and “L.K.Q” (Like Kind and Quality).
Now that you know some of the essential terms you need to navigate the world of insurance collision, take a dive into our glossary to find more useful terms related to insurance, auto detail and automotive paint.
At Inland Empire Autobody & Paint Inc. we have the expertise and the drive to always deliver great results. We take pride in our day-to-day workmanship and we work closely with our clients to satisfy their every concern.
We have locations in Riverside, California, and Moreno Valley, California. Call us, contact us through our website or through our social media accounts on Facebook, Twitter and Instagram to get information about our services: Collision repair, custom paint, windshield replacement, rim repair, paintless dent removal, auto detail, complete paint jobs and more!