5.CLUE: (Comprehensive Loss Underwriting Exchange) is a database of consumer claims created by ChoicePoint that insurance companies can access when they are underwriting or rating an insurance policy. What information does a CLUE report provide? The report contains consumer claim information provided by insurance companies. It includes policy information such as name, date of birth, and policy number, claim information such as date of loss, type of loss and amounts paid, and a description of property covered. It can include a detrimental report for each time you notified any insurance carrier of even mere possibility of making a claim. For example, reporting a wind damage claim under your home owner’s policy, EVEN IF you never actually made a claim, will be counted against you and result in a higher auto insurance premium! For auto coverage, it includes specific vehicle information, including past claims involving that vehicle. For more information, visit excellent site of Washington State Insurance Commissioner: http://www.insurance.wa.gov/factsheets/cluefacts_s.asp

6.Credit Scoring in Premium Pricing: Many insurance companies feel strongly that a mediocre or bad credit rating means you're a high risk driver. A credit score is a number insurance companies assign consumers based on their credit history, such as bill-paying history, number and type of accounts they have (including “zero balance large open credit card account), late payments, collection actions, outstanding debt and age of their accounts. For more information, visit excellent site of Washington State Insurance Commissioner: http://www.insurance.wa.gov/factsheets/creditscoring_s.asp

7.Bodily Injury Liability: It's part of liability coverage that insures you against injury you cause to others in an auto accident. It consists of two figures. One limits cost of injury coverage per person injured, and second limits total dollar amount of injury coverage (for everyone injured) in any single accident.

8.Property Damage Liability: It's part of liability coverage that insures you against cost of damage to another's property caused by you in an automobile accident. "Property" includes other cars, houses, fences, telephone poles, etc.

9.Uninsured Motorist: Uninsured motorist bodily injury coverage pays for medical expenses, lost wages, and general damages (e.g., pain and suffering, loss of enjoyment of life) when policyholders, authorized drivers, or passengers are injured in an accident caused by a driver who has no insurance coverage. It can cover members of owner’s family household. It usually consists of separate limits for bodily injury and property damage, so you will have to insure your own property against injury from another person. This policy is required in some states.

10.Underinsured Motorist: Underinsured motorist bodily injury coverage, pays for medical expenses, lost wages, and other general damages when policyholders, authorized drivers, or passengers are injured in an accident caused by a driver who has insufficient coverage. It can cover members of owner’s family household.It typically pays difference between at-fault driver's liability limit and holder's policy limit. There are separate limits for property damage and bodily injury liability, so you will have to insure your own property against injury from another person. This coverage is sometimes combined with uninsured motorist coverage under one policy, and may be required in some states.

On to Part 2