By Madeline Klein on March 13, 2017 in Insurance Basics
Original sale: The moment a vehicle is sold to its first owner, also known as an in-service date. This does NOT include when a car manufacturer sells to a dealership. Instead, an original sale is when a car's title receives its first name in the "registered owner" box. Even if a brand new car was bought and sold the same day, it would be considered "pre-owned" on the second sale.
It's important to know the original sale when it comes to warranties and policy wording. Typically, manufacturer's warranties begin on the original sale date, which means if you purchase a used car, you'll need to know that date to determine how much warranty is left. At Say, if you want to use the New Car Replacement coverage that’s included in Collision and Comprehensive, you're required to have purchased the vehicle in its original sale.
Consequential loss: Also known as an indirect loss, the costs resulting from property damage, beyond the costs of replacing the property itself. This basically means if someone hits your car, their insurance would have to pay for the "compensatory" (obviously required) costs of fixing your car. The consequential losses are the less obvious ones that can result from your damaged car, such as getting a rental car while yours is in the shop or missed work for appointments with the mechanic and/or adjuster.
Named insured: The person who owns and is in charge of the auto insurance policy. When you look at the names listed on the policy, you'll see them classified as a "named insured" or "driver". While a policy may list multiple drivers with rights to drive the vehicle(s) listed, only named insureds can make major policy changes. Claims checks are also written out to the named insured, even if they were not the driver at the time of the accident.