Car Insurance Jargon-The Most Commonly Used Terms
When you talk to an insurance agent about getting a car insurance policy, he or she may say a lot of words that fly right over your head. You don't sell insurance, so you just politely nod, and say um-hum as if you agree with everything they are saying. If this sounds like your experience, you could be getting sold a policy that you don't understand. There's no reason to be unaware anymore, below is a list of of the most commonly used terms and phrases in car insurance.
Deductible- The deductible is the amount you pay out of your own pocket before insurance coverage kicks in. For example, before your insurance covers an accident you caused, you have to pay $500 up front.
Policy limit- This is the maximum amount that your insurance provider will pay. You will be financially responsible for any bodily injury or property damage above this limit, so lower or raise the limit to suit your needs.
Liability- Liability insurance is required in every state for drivers. The liability limit differs by state. Liability is insurance that pays for damage done when you are at fault in an accident.
Full coverage- Full coverage is a name for a combination of insurance policies. A "full coverage" plan will consist of liability insurance, comprehensive car insurance, and collision coverage.
Comprehensive-Comprehensive protects you from the financial losses of incidents that wouldn't typically be your fault. Things like auto break-ins, bad weather, animal-involved accidents etc.
Collision Coverage-Collision insurance is a separate product that reimburses you for your losses even when you are at fault. Collision plans carry a separate deductible. Collision coverage cannot be purchased without comprehensive coverage, but comprehensive can be purchased without collision coverage.
Insurance Quote- When you submit your application in person or online, you will be quoted prices for insurance plans. This is before you are actually approved, and you are under no-obligation to buy when you receive a price quote. Insurance providers take a several factors into consideration when providing you with a quote, factors such as car make and model, marital status, gender, age, driving history, credit and location.
Understanding car insurance policies is the key to getting the coverage you want, and the discounts you qualify for. There is a reason most people are paying too much for their car insurance, and it isn't because the deals aren't out there. It's because the don't know the car insurance jargon. Learn the lingo and save cash now.
This article was written by Brad King. See out car insurance glossary at Buying Auto Insurance Online. For more info and tips please visit www.BuyingAutoInsuranceOnline.net