Understanding your insurance terms will help you get the most out of your vehicle insuranceMost of the terms used in insurance are confusing and prevent car owners from understanding their insurance policy.This could limit people who buy auto insurance from receiving the full amount Advantages of its coverage.
Car insurance terms you should know
To help you understand your car insurance, access car insurance Here are 10 insurance terms you should know.
- Policyholder: A person who purchases automobile insurance and pays premiums. The policyholder may own the policy and pay the premium, but may not own the insured vehicle.
- negligence accident: This refers to a car accident wholly or partly caused by you. Your auto insurance will normally pay up to the expected limit for injury and property claims of the victim. You can also pay legal costs if you file a lawsuit.
- car insurance claim: The insurance policyholder claims the automobile insurance company for the cost of repairing the car and the medical treatment of the injury.
- Collision range: This is a type of compensation that compensates for a single car accident such as a collision with a tree. It is usually required when purchasing a car with a loan.
- comprehensive coverage: Comprehensive coverage to cover car repair costs After animal crashes and certain non-collision issues such as fires, car theft, and falling objects.
- car insurance quote: This is a rough estimate of what the insurance company will charge for your policy.
- deductible: a Deduction amount is pre-determined The amount the insurance company deducts from the policy. For example, if your total damages are $5,000 and your deductible is $500, you will receive a claim check for $4,500.
- Personal Injury Protection (PIP): This type of auto insurance pays for treatment of injuries regardless of who was at fault for the accident. It also covers expenses that MedPay does not cover, such as physical therapy and lost income.
- premium: This is the cost that your insurance company expects you to pay annually, monthly or every six months.
- SR-22 Insurance Form: This is an official document that you may need to prove that you have adequate car insurance. Your insurance company will complete this form to help you restore or maintain your driver’s license after a traffic violation.
What is an “additional insured”?
investedia Define additional insured as a status associated with a general liability policy whose coverage covers a group or individual not named in the policy. It protects the insured or individual under the policyholder’s insurance and can even claim insurance when sued. This typically involves a joint vehicle owner, leaseholder, or person driving a vehicle owned by another person.
What happens to my insurance when I add someone to it?
Groups or individuals added to the policy are additional insured persons and are added through amendments called approvals.according to balanceif the policyholder includes someone through an additional insured, any person named in the coverage can seek coverage from the insurance company. You will also be notified of changes to your vehicle and insurance coverage.
Please note that the insurance company considers the risks associated with additional insurance to be minimal. Therefore, the cost of additional insured persons is usually low compared to the cost of the premium.