The terms used in auto insurance are quite numerous, but the most important ones will be outline.

Actual Cash Value (ACV) – This means fair market value in California auto insurance.

Endorsement for Additional Equipment – This means provision of coverage for some parts and equipments which were not installed by the producer.

Adjuster – In California auto insurance, an adjuster is someone who inspects, and determine the loss of an accident under policy terms.

Binder– This means an agreement offering temporary coverage before a policy is issued or delivered.

Broker Fee Agreement – This means the charges for the service provided by the broker to the policy holder.

California Automobile Assigned Risk Plan (CAARP) – This is a coverage made available to persons who cannot buy personal passenger or commercial liability auto coverage due to bad driving history.

Comparative Negligence – This means the percentage of fault that each party contribute to the causes of an accident.

Comprehensive Coverage – This coverage pay for other causes of accident, apart from collision.

Claim – This is notification to insurance company informing them about loss and necessary actions to be taken.

Collision coverage– This covers damage to your car as a result of collision with objects like trees, buildings, etc.

Endorsement– This means a written agreement which adds to or subtracts from and insurance policy.

First Party– This is the person who carries the policy(insured).

Insured – This is the person entitled to coverage benefits when accidents happen.

Insurer – This is the insurance company who pays for damages and give coverage benefits.

Liability Insurance– This covers a policyholder’s legal liability as a result of injuries caused to other people, or damage to their property.

License – This means an authority certificate issued by the Department of Insurance to an insurer to California auto insurance companies to commence insurance transactions.

Limits – This means the maximum sum of benefits that the auto insurance company will pay in the case of an accident.

These are just a few terms used in auto insurance by California auto insurance companies.

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Help answer the question about auto insurance term

Auto Insurance Terms: What do they really mean?
Can anyone help me make sense of this? Here are the key terms I'm looking to make sense of. Would these be decent for auto insurance coverage?

Bodily Injury Liability: $50,000/$100,000
Property Damage Liability: $25,000
Underinsured Motorist: $50,000/$100,000
Underinsured Motorist Property Damage: $25,000

Also…Why does my premium go up when the above prices are reduced to $25,000/$50,000 for Bodily Injury Liability/Underinsured Motorist & $10,000 for Property Damage Liability/Underinsured Motorist Property Damage?

Any other tips for good car insurance?

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