These are the car insurance terms used in the industry that you need to know when getting your car insured.
Car Insurance Terms
When it comes to car insurance, there are a lot of terms that can be confusing. Here is a glossary of some of the most common car insurance industry terms that you should know:
- Premium: The amount of money you pay to the insurance company each month or year for car insurance coverage.
- Deductible: The amount of money you have to pay out of pocket before the insurance company will start paying for a claim.
- Collision: Coverage that pays for damage to your car if you are in an accident, regardless of who is at fault.
- Comprehensive: Coverage that pays for damage to your car from events other than a collision, such as fire, theft, or vandalism.
- Liability: Coverage that pays for the medical expenses and property damage of other people if you are in an accident and you are at fault.
- Uninsured/Underinsured Motorist: Coverage that pays for your medical expenses and property damage if you are in an accident with someone who does not have insurance or does not have enough insurance.
- Endorsement: A change to your car insurance policy that adds or removes coverage.
- No-fault: A type of car insurance system in which each driver’s insurance company pays for their own medical expenses and property damage, regardless of who is at fault in the accident.
- Claim: A request for payment from the insurance company for a covered loss.
These are just a few of the most common car insurance industry terms. It is important to understand these terms so that you can make informed decisions about your car insurance coverage.
Here are some additional tips for understanding car insurance industry terms:
- Read your policy carefully. Your policy will define all of the terms that apply to your coverage.
- Ask questions. If you do not understand a term, do not be afraid to ask your insurance agent for clarification.
- Shop around. Compare quotes from different insurance companies to get the best deal on coverage.
By understanding car insurance industry terms, you can make sure that you have the right coverage for your needs and that you are getting the best possible deal on your car insurance.
Here are some additional resources that you may find helpful:
- Insurance Information Institute: https://www.iii.org/
- National Association of Insurance Commissioners: https://www.naic.org/
- Consumer Financial Protection Bureau: https://www.consumerfinance.gov/
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