Insurance Primer
Here are some brief explanations of insurance terms you may hear when working with us. (You can always feel free to ask us anything, anytime).
About “Aftermarket” Parts
- Aftermarket parts are usually inferior and they are not made by your vehicle’s manufacturer (OEM parts).
- These parts are often ill fitting (imprecise) and they typically wear more quickly than their OEM counterparts.
- Most important, they may negatively impact your vehicle’s safety, longevity and appearance.
- Insurance coverage of these vary widely.
- Use of aftermarket parts varies on type of coverage.
About “Betterment” and “Depreciation”
- Insurance companies may adjust the amount of your claim based on “depreciation” and “betterment.”
- Depreciation is the decrease in value of your auto (stemming from age, and wear and tear).
- Betterment is an insurance industry term that means that the company will pay for the unworn part of an item while you, the policyholder, pays for the amount that was used/worn.
About Lien Holders on Checks
- If you have any lien holders, many insurers will include them on checks and this may cause delay of vehicle delivery until the signature of the lien holder(s) is/are obtained.
- Delays occur from the possible necessity of getting photos of your auto, copies of invoices, and mailing of checks to and from the lien holder.
About Rental Coverage
- As with so many other factors, rental coverage varies widely between insurers.
- You can have unlimited coverage of a smaller size vehicle, to no coverage at all; check your policy.
- It may be wise to double check with your insurance coverage and if you don’t have rental coverage, ask for it on your policy.