Auto Claims Mediation

11 Coverage – The scope of the protection provided under a contract of insurance; any of several risks covered by a policy. Deductible Clause – Specifies the amount of loss which the insured is responsible to pay before benefits from the insurance policy are payable. Some policies will have a separate deductible amount for collision and comprehensive damage coverage. Depreciation – A decrease in the value of property due to wear and tear or obsolescence. Extent/Scope of Damage – Components of the automobile possibly affected by cause of loss; body, frame, transmission et cetera. In Writing – Includes transmission by facsimile (fax). Policy – Means the written contract between an insured and an insurance company stating the obligations and responsibilities of each party. A policy may include any applications, binders, declaration forms, endorsements, certificates, and any other documents which describe, affect or limit coverage under the policy. Prior Damage – Unrepaired damage that resulted from an occurrence prior to date of loss of the current claim. Total Loss – Damage or destruction to an automobile, to the extent that it cannot be repaired or restored to its condition prior to the date of loss, without unreasonable costs to do so. If the repair costs exceed or are within a certain percentage of the fair market value (see ACV) the vehicle will be totaled. Percentages established by the insurers generally range from 70% to 80% of the ACV. An unrecovered stolen vehicle is always a total loss.