Did You Know...

  1. "Captive" agents work for their company first, and for you second.

  2. Captive agents can't shop your insurance around and find you the best value for your money when your current premium increases. As an independent agent, we aren't locked into one company – so you don’t need to change agencies as your insurance and service needs change.

  3. When you choose to work with BBH Insurance, you don't have to call around checking different companies – We do the shopping for you!

Glossary of Insurance Terms

Actual Cash Value
An amount equal to the cost of replacing a damaged item with
a new one, minus depreciation.
At-Fault
responsible for an accident.
Agent
An insurance salesperson who sells and services policies. An independent agent usually represents two or more insurers in a sales and service capacity and is paid on a commission basis. An exclusive agent or captive agent represents only one company, usually on a commission basis.
Bodily Injury Liability
insurance that pays for another person’s bodily injury or death in an automobile accident caused by you. It compensates those people for pain, suffering, and other personal hardships, and will also pay for some economic damages.
Cancellation
A termination of a policy before its normal expiration date.
CLUE Report
Short for Comprehensive Loss Underwriting Exchange which keeps insurance claims history.
Collision Coverage
Optional insurance that pays for physical damage caused when
your own car hits another car or object, regardless of who is at fault. Collision coverage may carry a deductible -- a stated amount that you must first pay out of your own pocket.
Comprehensive Physical Damage Coverage
Pays for damage to your auto caused by fire, theft, vandalism, flood, falling objects, or hail. This coverage may also carry a deductible.
Deductible
The amount you must pay from your own pocket for each claim or
accident before the company pays on a claim. The bigger the deductible, the cheaper the coverage.
Depreciation
The decrease in value of your vehicle or its parts due to wear, tear,
and age.
Exclusion
A provision in an insurance policy that denies coverage for certain
losses, persons, or property.
Liability Insurance
Insurance that pays when you are liable for injuries to other
persons or damage to their property.
Non-Renewal
The termination of the insurance contract by electing not to renew
the policy at the anniversary date.
PIP (Personal Injury Protection)
Commonly referred to as “no-fault” insurance. This was designed to pay promptly -- regardless of fault or negligence -- for actual economic losses (e.g., medical expenses, lost earnings, and other reasonable and necessary expenses related to injuries sustained) to a driver or passenger injured in the car and to pedestrians injured by your car, because of its use or operation. It applies to personal injuries only, not for physical damages to the vehicle.
Policy Limits
The maximum amount of benefits the insurance company agrees to pay on a loss.
Policy Period
The amount of time an insurance contract or policy provides
coverage.
Preferred Risk
A person or risk less likely than the average person or risk to
make a claim. A preferred risk usually qualifies for a lower premium.
Premium
The amount you pay for insurance.
Pro Rata Cancellation
Revocation of a policy by an insurance company that returns the unearned premium to the policyholder.
Property Damage Liability
This coverage protects you from claims and lawsuits by people whose property is damaged as a result of an accident you caused.
Short Rate Cancellation
Cancellation by the insured of an insurance policy for which the returned, unearned premium is diminished by administration costs incurred when the insurance company places the policy on its books.
Underinsured Motorist Coverage (UIM)
Provides coverage for bodily injury caused by a driver who is underinsured. It does not cover damage to your car.
Uninsured Motorist Bodily Injury Coverage (UMBI)
Insurance that covers the insured and family members if injured by a hit-and-run motorist or an uninsured driver, provided the other driver is at fault.

 

 
 
 
 
 

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