Driving for Seniors

Common Terms Actual Cash Value (ACV) —In California, this means fair market value, unless your policy defines it in a different way. The fair market value of an item is the dollar amount that a knowledgeable buyer (under no unusual pressure) is willing to pay, and a knowledgeable seller (under no pressure) is willing to accept. Adjuster —The person from your insurance company who investigates and evaluates your damages and losses. Agent —An individual or organization licensed to sell and service insurance policies for an insurance company. Binder —A short-term agreement that provides temporary auto coverage until your auto insurance policy starts. Broker —An individual or organization that is licensed to sell and service insurance policies for you. Broker Fee Agreement —The contract between you and your broker. It lists the fees for your broker’s services. Cancellation —When you or your insurance company ends your policy early. The company might do this because you did not pay your premium. You might cancel your policy because you no longer own or drive a car. Claim —Your request to an insurance company to cover an accident or other loss. Commission —The fee that an insurance company pays the agent or broker who sells a policy. Comparative negligence —The percent of responsibility that each driver shares in an accident when both drivers are at fault. Collision coverage —Pays for damage to your car caused by an accident with another vehicle or an object, such as a deer, tree, rock, guardrail, building, or person. Comprehensive coverage —Pays for damage to your car caused by something other than a collision. Comprehensive covers things like fire, theft, vandalism, windstorm, flood, falling objects, etc. 16