Business
Car insurance FAQs: This is what a deductible and 14 other terms mean
You’ve finally managed to buy a car—but you’re not done yet. Now you need to choose car insurance, something many vehicle owners might find considerably less fun than enjoying their new ride. Insurance policies are contracts full of complex terminology that must meet state regulations, so the technical language can make anyone feel like they need a law degree to translate. But this can be by design: Insurers also make policies complex in order to eliminate ambiguities that lawyers can leverage in court.
If you’ve given up trying to make sense of what’s covered, and to what degree, you’re not alone. About 96% of drivers don’t understand the basics of their car insurance policy, according to a 2022 survey. To address this problem, CoPilot analyzed National Association of Insurance Commissioners and Insurance Information Institute resources to compile 15 terms consumers absolutely need to know to navigate the car insurance market.
Not knowing the lingo insurers use could cost you in the long run—if you make assumptions about the language of your policy, you may be in for a shock if it doesn’t cover certain damages or injuries.
Some states—including Florida, Colorado, Arizona, Texas, and North Carolina—require policies to be readable, using grade level or Flesch scale readability scores to determine how easy they are to understand. But they still contain industry terms that can be difficult to parse.
Dmitry Dven // Shutterstock
Deductible
When you get auto insurance, the insurer is taking a risk that you might get in an accident, but you share that risk through your deductible. That’s the amount of money or percentage of costs you pay if you have a claim before the insurance coverage kicks in.
For example, say you drive through a grocery store parking lot, hit a cart, and it breaks your headlight. The repair estimate is $250, and you have a $200 deductible. You would pay $200, and the insurance company would pay $50. If your deductible were more than $250, you’d be responsible for the entire bill. Typically, the higher the deductible on your policy, the less your insurance policy will cost.
iJeab // Shutterstock
Premium
A premium is the amount of money you pay for insurance coverage. Insurance companies determine this amount based on factors like your age, where you live, your driving record, and whether you’ve filed a claim in the past. You may have to pay your premium in full before your coverage starts. But depending on the insurer, you may also be able to pay semiannually, quarterly, or monthly.
Southworks // Shutterstock
Liability insurance
If you cause an accident, liability insurance will pay for the medical and property costs the other party incurs. This can be broken out into body injury liability and property damage liability. The amount of coverage you have is the maximum amount of money the insurance company will pay out.
State requirements vary, but coverage is generally in the tens of thousands. For instance, in 2023 a New Jersey law went into effect that increased the required minimum amount of liability coverage for that state’s drivers from $15,000 to $25,000, a move that will add about $125 to drivers’ bills annually until the minimum increases again to $35,000 in 2026.
Aisylu Ahmadieva // Shutterstock
Commercial auto insurance
Business owners who have vehicles that are primarily used for company business—including company cars, trucks, vans, and construction vehicles—get this type of insurance to cover their fleets.
Commercial insurance offers protection for bodily injury and property damage liability that affects others. It also pays for medical treatments for people who were injured in the company’s vehicle, as well as personal injury protection for those people. Commercial insurance also often covers damage done in collisions or caused by uninsured motorists. It can also include what’s often called “comprehensive” coverage, which pays for damage done by thieves, vandals, and weather.
This insurance usually has higher liability limits, which gives business owners a little more protection from lawsuits if someone using a company car causes an accident. Rates have been on the rise, up 7% in the fourth quarter of 2022, according to a report from MarketScout. This increase is in part due to inflation, but it’s also because drivers are taking more risks and ending up in bigger accidents.
Rawpixel.com // Shutterstock
Personal auto insurance
If you own a car or truck that’s for personal use, you’ll shop for this type of auto insurance policy. It’s mandatory for car owners who live in Washington D.C. and every state—except New Hampshire and Virginia—which have laws requiring drivers to be able to pay for medical bills and damages if they cause a crash. Having insurance fulfills that responsibility.
If you don’t have insurance—and 1 in 8 drivers does not, according to the Insurance Information Institute—and cause an accident, you’re responsible for paying any costs, and your driver’s license could be suspended.
Canva
Terms, lapses, and effective dates
When you purchase an auto insurance policy, you buy it for a certain period of time—the term length—that begins on a particular day, called the effective date.
If you don’t pay your insurance bill on time, your policy will lapse, meaning that the insurance company can cancel your coverage. When you’re buying a new car, you may need to buy insurance before you take the car off of the lot, so check with the dealership. If you’re trading in another car, your insurance company may allow you a few days’ grace period on your old policy in order to get the new policy worked out.
Canva
Rebate
Sometimes events will happen that cause insurers to refund some or all of your insurance premium payments. This happened notably after the initial pandemic lockdowns, when many insurers sent rebates to policyholders because people were driving less and there was not as much traffic on the roads, both of which meant fewer accidents insurers had to cover.
Other reasons arise as well. For instance, in 2022, the state of Michigan issued a $400 rebate for each registered vehicle in the state because there was a surplus in the state’s catastrophic claims fund, which is supported by insurance companies and drivers’ premium payments.
Pixel-Shot // Shutterstock
Underwriting
When an insurance company gives you a policy, they’re taking a risk that you’ll be a safe driver and won’t cause any accidents. Underwriting is the process they use to determine those risks, decide whether to offer you insurance, and what the rate will be if they do.
In this process, insurers sort applicants into groups of similar risk behavior and determine a rate for the entire group based on the claims that come from that group. Low-risk groups have lower rates than high-risk groups.
Memory Stockphoto // Shutterstock
Copay
Copays allow insurers and insured consumers to share incurred costs. They’re typically used when a claim involves medical expenses, and function much like copays in health insurance. Copays can also happen with auto repairs if a repair shop and insurer can’t agree on a price to repair damage on a vehicle. In those cases, the insured person would have to pay the difference between the amount the repair ship is charging and the amount the insurance company is willing to pay.
Gorodenkoff // Shutterstock
Personal injury protection coverage
If you’re in an accident, personal injury protection, often called PIP, covers medical expenses for you and anyone in your vehicle, whether you—or they—have health insurance. It differs from liability coverage, which is for expenses for the other party in a crash.
PIP coverage is mandatory for drivers in any of the 12 states that have no-fault insurance laws, which require all drivers in a crash to file an insurance claim, regardless of who was at fault. Those states are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. Drivers in Puerto Rico must also have PIP.
Sun Shock // Shutterstock
Private passenger auto insurance
Private passenger auto insurance is the technical term given to the insurance plan you have for your personal vehicle. This blanket term includes all the different types of coverage you might have, such as liability, PIP, collision, and uninsured/underinsured motorist coverage.
If you use your personal car for work, private passenger insurance may restrict or limit the coverage you have. During the pandemic, Maryland recommended that insurers waive this restriction, as many citizens started using their personal vehicles to work as delivery drivers.
Nannycz // Shutterstock
Auto physical damage insurance
While liability insurance covers damage you cause to someone else’s car, auto physical damage insurance covers damage that happens to your own car. This comes in two main types, which are often bundled together but may also be sold separately, to allow consumers better control over their costs.
Collision coverage kicks in when you have, yes, a collision—not just with other cars, but also if you had a run-in with a deer or a fence. Comprehensive coverage is what takes care of the payments if you discover someone has smashed in your window or even stolen your car. This type of insurance also covers weather-related damage, such as flooding, hailstorms, and fire.
emilie zhang // Shutterstock
Claim
A claim is the report you give to your insurance company if you’ve been in a crash and want them to cover the costs of the damage. Insurers will investigate the event and can choose to accept the claim—that is, pay for damages according to the terms of your insurance policy—or deny it and pay nothing. You may be able to appeal a denial, or even a partial denial, to your insurer or even to a state agency that regulates the insurance industry.
If you’re at fault for the crash, making a claim could cause your insurance premiums to go up. Due to the increasing costs of claims, the Insurance Information Institute found that rates rose 8.8% in 2022. If you’re not at fault, filing a claim allows your insurance company to connect with the other drivers’ insurance companies and settle any financial disputes without your involvement.
megaflopp // Shutterstock
Claims adjustment expenses
When someone makes an insurance claim, the insurance company has to fully investigate it to make sure the claim is legitimate. This can take a lot of legwork, as it includes determining what happened, how much damage was actually done, how much of the claim will be covered, settling it, and even defending the policyholder against legal claims. All of this costs money, so some insurers require policyholders to pay for some of these expenses.
SKT Studio // Shutterstock
Financial responsibility
States have so-called “financial responsibility” laws that require drivers to be able to pay for crashes for which they are liable. Each state has its own requirements for the minimum amount of liability levels that drivers must have. Most require at least some coverage for bodily injury and property damage liability. Some also require additional types of insurance, such as uninsured motorist, underinsured motorist, and personal injury protection.
New Hampshire is the only state that doesn’t require auto insurance, although banks who lend money to car buyers may require it as a condition of the loan. New Hampshire drivers who are in crashes are required to prove they have enough assets to cover the costs. And if the damage or injury is serious enough, they may have their license suspended.
Virginia has minimum insurance requirements, but the state allows drivers to drive without insurance if they pay the state a special fee, which does not provide any insurance coverage.
This story originally appeared on CoPilot and was produced and
distributed in partnership with Stacker Studio.
You walk into a fast-food restaurant on your lunch break. You don’t see a cashier but instead a self-service kiosk, a technology that is becoming the new norm in eateries across the country. The kiosks usually offer customers a menu to scroll through and pictures of meals and specials with prompts to select their food and submit their payment in one place.
Self-service kiosks are big business. In fact, the market for self-service products is expected to grow from a $40.3 billion market value in 2022 to $63 billion by 2027, according to a report from BCC Research. Consumers do have mixed opinions about the kiosks, but about 3 out of 5 surveyed consumers reported that they were likely to use self-service kiosks, according to the National Restaurant Association. The technology, while expensive, can boost businesses’ bottom lines in the long run.
Task Group summarized the rise in digital ordering over the past couple of years, its acceptance among customers, and a cost analysis of adopting the technology.
Self-service kiosks—digital machines or display booths—are generally placed in high-traffic areas. They can be used for different reasons, including navigating a store or promoting a product. Interactive self-service kiosks in particular are meant for consumers to place orders with little to no assistance from employees.
The idea of kiosks isn’t new. The concept of self-service was first introduced in the 1880s when the first types of kiosks appeared as vending machines selling items like gum and postcards. In the present age of technology, the trend of self-service has only grown. Restaurants such as McDonald’s and Starbucks have already tried out cashierless technology.
From a business perspective, the kiosks offer a huge upside. While many employers are looking for workers, they’re having a hard time finding staff. In the midst of the COVID-19 pandemic, employers struggled with a severe employee shortage. Since then, the problem has continued. In 2022, the National Restaurant Association reported that 65% of restaurant operators didn’t have enough workers on staff to meet consumer demand. With labor shortages running rampant, cashierless technology could help restaurants fill in for the lack of human employees.
The initial investment for the kiosks can be high. The general cost per kiosk is difficult to quantify, with one manufacturer estimating a range of $1,500 to $20,000 per station. However, with the use of kiosks, restaurants may not need as many cashiers or front-end employees, instead reallocating workers’ time to other tasks.
In May 2022, the hourly mean wage for cashiers who worked in restaurants and other eating establishments was $12.99, according to the Bureau of Labor Statistics. Kiosks could cost less money than a cashier in the long run.
But how do the customers themselves feel about the growing trend? According to a Deloitte survey, 62% of respondents report that they were “somewhat likely” to order from a cashierless restaurant if given the chance to do so. The same survey reported that only 19% of respondents had experience with a cashierless restaurant.
What would it mean for society if restaurants did decide to go completely cashierless? Well, millions of positions would likely no longer be necessary. One report suggests 82% of restaurant positions could be replaced by robots, a prospect making automation appealing to owners who can’t find staff to hire.
Due to the ongoing labor shortage, employers have tried raising employee wages. Papa John’s, Texas Roadhouse, and Chipotle were among the restaurant companies that increased employee pay or offered bonuses in an attempt to hire and retain more workers. Meanwhile, some companies have decided to use technology to perform those jobs instead, so that they wouldn’t have to put effort into hiring or focus their existing staff on other roles.
Story editing by Ashleigh Graf and Jeff Inglis. Copy editing by Tim Bruns.
It’s well-documented that the surest, and often best, return on investments comes from playing the long game. But between stocks and real estate, which is the stronger bet?
To find out, financial planning firm Wealth Enhancement Group analyzed data from academic research, Standard and Poor’s, and Nareit to see how real estate compares to stocks as an investment.
Data going back to 1870 shows the well-established power of real estate as a powerful “long-run investment.” From 1870-2015, and after adjusting for inflation, real estate produced an average annual return of 7.05%, compared to 6.89% for equities. These findings, published in the 2019 issue of The Quarterly Journal of Economics, illustrate that stocks can deviate as much as 22% from their average, while housing only spreads out 10%. That’s because despite having comparable returns, stocks are inherently more volatile due to following the whims of the business cycle.
Real estate has inherent benefits, from unlocking cash flow and offering tax breaks to building equity and protecting investors from inflation. Investments here also help to diversify a portfolio, whether via physical properties or a real estate investment trust. Investors can track markets with standard resources that include the S&P CoreLogic Case-Shiller Home Price Indices, which tracks residential real estate prices; the Nareit U.S. Real Estate Index, which gathers data on the real estate investment trust, or REIT, industry; and the S&P 500, which tracks the stocks of 500 of the largest companies in the U.S.
High interest rates and a competitive market dampened the flurry of real-estate investments made in the last four years. The rise in interest rates equates to a bigger borrowing cost for investors, which can spell big reductions in profit margins. That, combined with the risk of high vacancies, difficult tenants, or hidden structural problems, can make real estate investing a less attractive option—especially for first-time investors.
Keep reading to learn more about whether real estate is a good investment today and how it stacks up against the stock market.
Wealth Enhancement Group
Stocks and housing have both done well
REITs can offer investors the stability of real estate returns without bidding wars or hefty down payments. A hybrid model of stocks and real estate, REITs allow the average person to invest in businesses that finance or own income-generating properties.
REITs delivered slightly better returns than the S&P 500 over the past 20-, 25-, and 50-year blocks. However, in the short term—the last 10 years, for instance—stocks outperformed REITs with a 12% return versus 9.5%, according to data compiled by The Motley Fool investor publication.
Whether a new normal is emerging that stocks will continue to offer higher REITs remains to be seen.
This year, the S&P 500 reached an all-time high, courtesy of investor enthusiasm in speculative tech such as artificial intelligence. However, just seven tech companies, dubbed “The Magnificent 7,” are responsible for an outsized amount of the S&P’s returns last year, creating worry that there may be a tech bubble.
While indexes keep a pulse on investment performance, they don’t always tell the whole story. The Case-Shiller Index only measures housing prices, for example, which leaves out rental income (profit) or maintenance costs (loss) when calculating the return on residential real estate investment.
Wealth Enhancement Group
Housing returns have been strong globally too
Like its American peers, the global real estate market in industrialized nations offers comparable returns to the international stock market.
Over the long term, returns on stocks in industrialized nations is 7%, including dividends, and 7.2% in global real estate, including rental income some investors receive from properties. Investing internationally may have more risk for American buyers, who are less likely to know local rules and regulations in foreign countries; however, global markets may offer opportunities for a higher return. For instance, Portugal’s real estate market is booming due to international visitors deciding to move there for a better quality of life. Portugal’s housing offers a 6.3% return in the long term, versus only 4.3% for its stock market.
For those with deep enough pockets to stay in, investing in housing will almost always bear out as long as the buyer has enough equity to manage unforeseen expenses and wait out vacancies or slumps in the market. Real estate promises to appreciate over the long term, offers an opportunity to collect rent for income, and allows investors to leverage borrowed capital to increase additional returns on investment.
Above all, though, the diversification of assets is the surest way to guarantee a strong return on investments. Spreading investments across different assets increases potential returns and mitigates risk.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Wealth Enhancement Group and was produced and
distributed in partnership with Stacker Studio.
In today’s digital climate, consuming sports has never been easier. Thanks to a plethora of streaming sites, alternative broadcasts, and advancements to home entertainment systems, the average fan has myriad options to watch and learn about their favorite teams at the touch of a button—all without ever having to leave the couch.
As a result, more and more sports venues have committed to improving and modernizing their facilities and fan experiences to compete with at-home audiences. Consider using mobile ticketing and parking passes, self-service kiosks for entry and ordering food, enhanced video boards, and jumbotrons that supply data analytics and high-definition replays. These innovations and upgrades are meant to draw more revenue and attract various sponsored partners. They also deliver unique and convenient in-person experiences that rival and outmatch traditional ways of enjoying games.
In Los Angeles, the Rams and Chargers’ SoFi Stadium has become the gold standard for football venues. It’s an architectural wonder with closer views, enhanced hospitality, and a translucent roof that cools the stadium’s internal temperature.
The Texas Rangers’ ballpark, Globe Life Field, added field-level suites and lounges that resemble the look and feel of a sports bar. Meanwhile, the Los Angeles Clippers are building a new arena (in addition to retail space, team offices, and an outdoor public plaza) that will seat 18,000 people and feature a fan section called The Wall, which will regulate attire and rooting interest.
It’s no longer acceptable to operate with old-school facilities and technology. Just look at Commanders Field (formerly FedExField), home of the Washington Commanders, which has faced criticism for its faulty barriers, leaking ceilings, poor food options, and long lines. Understandably, the team has been attempting to find a new location to build a state-of-the-art stadium and keep up with the demand for high-end amenities.
As more organizations audit their stadiums and arenas and keep up with technological innovations, Uniqode compiled a list of the latest tech advancements to coax—and keep—fans inside venues.
Jeff Gritchen/MediaNews Group/Orange County Register // Getty Images
Just Walk Out technology
After successfully installing its first cashierless grocery store in 2020, Amazon has continued to put its tracking technology into practice.
In 2023, the Seahawks incorporated Just Walk Out technology at various merchandise stores throughout Lumen Field, allowing fans to purchase items with a swipe and scan of their palms.
The radio-frequency identification system, which involves overhead cameras and computer vision, is a substitute for cashiers and eliminates long lines.
RFID is now found in a handful of stadiums and arenas nationwide. These stores have already curbed checkout wait times, eliminated theft, and freed up workers to assist shoppers, according to Jon Jenkins, vice president of Just Walk Out tech.
Billie Weiss/Boston Red Sox // Getty Images
Self-serve kiosks
In the same vein as Amazon’s self-scanning technology, self-serve kiosks have become a more integrated part of professional stadiums and arenas over the last few years. Some of these function as top-tier vending machines with canned beers and nonalcoholic drinks, shuffling lines quicker with virtual bartenders capable of spinning cocktails and mixed drinks.
The kiosks extend past beverages, as many college and professional venues have started using them to scan printed and digital tickets for more efficient entrance. It’s an effort to cut down lines and limit the more tedious aspects of in-person attendance, and it’s led various competing kiosk brands to provide their specific conveniences.
Kyle Rivas // Getty Images
Mobile ordering
Is there anything worse than navigating the concourse for food and alcohol and subsequently missing a go-ahead home run, clutch double play, or diving catch?
Within the last few years, more stadiums have eliminated those worries thanks to contactless mobile ordering. Fans can select food and drink items online on their phones to be delivered right to their seats. Nearly half of consumers said mobile app ordering would influence them to make more restaurant purchases, according to a 2020 study at PYMNTS. Another study showed a 22% increase in order size.
Many venues, including Yankee Stadium, have taken notice and now offer personalized deliveries in certain sections and established mobile order pick-up zones throughout the ballpark.
Darrian Traynor // Getty Images
QR codes at seats
Need to remember a player’s name? Want to look up an opponent’s statistics at halftime? The team at Digital Seat Media has you covered.
Thus far, the company has added seat tags to more than 50 venues—including two NFL stadiums—with QR codes to promote more engagement with the product on the field. After scanning the code, fans can access augmented reality features, look up rosters and scores, participate in sponsorship integrations, and answer fan polls on the mobile platform.
Boris Streubel/Getty Images for DFL // Getty Images
Real-time data analytics and generative AI
As more venues look to reinvigorate the in-stadium experience, some have started using generative artificial intelligence and real-time data analytics. Though not used widely yet, generative AI tools can create new content—text, imagery, or music—in conjunction with the game, providing updates, instant replays, and location-based dining suggestions
Last year, the Masters golf tournament even began including AI score projections in its mobile app. Real-time data is streamlining various stadium pitfalls, allowing operation managers to monitor staffing issues at busy food spots, adjust parking flows, and alert custodians to dirty or damaged bathrooms. The data also helps with security measures. Open up an app at a venue like the Honda Center in Anaheim, California, and report safety issues or belligerent fans to help better target disruptions and preserve an enjoyable experience.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Uniqode and was produced and
distributed in partnership with Stacker Studio.
-
Business4 months agoSkill-based hiring is the answer to labour shortages, BCG report finds
-
Business5 months agomesh conference goes deep on AI, with experts focusing in on training, ethics, and risk
-
Events3 months agoThe Northern Lights Technology & Innovation Forum comes to Calgary next month
-
People4 months agoHow connected technologies trim rework and boost worker safety in hands-on industries
-
Events6 months agoTop 5 tech and digital transformation events to wrap up 2023