Glossary of Auto Insurance Terms

Do you want to get the auto insurance coverage you desire for your car? One basic way of accomplishing this is by learning the terms pertinent to it.

The benefits of learning and knowing these terms can not be over-emphasized. It will not only build your basic knowledge, but stand as a key factor to choosing the right insurance policy for your car.

Damage

This is another term related to this type of insurance. In speaking of this, one is usually referring to the loss of one or more insured properties e.g. car, or the harm that has befallen the policyholder in an accident.

Typically, an auto insurance company would offer a claim to you that has experienced the damage in one way or the other, by means of the insurer adjuster.

It may be important that you (the policyholder) have all the correct details filed regarding any damage that has occurred before sending a claim notice to your auto carrier. This may include the total amount of incurred loss, as computed from the damage.

This is because some auto insurance companies would want to know or determine the cost of damage before offering a claim to you (the claimant), which is absolutely usual. Following legal procedures of your insurance policy would greatly help in the reimbursement of your car.

Deductible

You may likely have heard such word or hear others say it, but do not know what it means. In the insurance field, the word refers to the amount of money that you (the policyholder or insured) must pay to your insurer on the event of a loss, before your insurer can offer you a claim for the loss.

This is an up-front payment as applied to you under the insurance policy, to be qualified for the benefits of loss coverage that your insurer will offer to you. It is a general feature of most insurance companies, but as applied to the law of the state.

The amount considered to be deductible varies, but in most states it may range from about $200-$450. Policyholders of collision and/or comprehension coverage are entitled for deductible, for their loss to be fully reimbursed.

Paying a deductible that is high will most likely save more money for you on your coverage contract. But be informed that your insurer payment for covered loss will be determined by the policy limits of your insurer.

When running an auto policy, be prepared to pay for your deductible concerning any possible loss. In doing so, you are telling your insurer to pay for all the other huge expenses for loss coverage.

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