Car Insurance Terms That You Need to Understand

Insurance Blog

Insurance terms can sound like jargon to the untrained ear. Unfortunately, people do not get to learn these terms while taking driving lessons. As soon as you own a car, you are required to insure it. The insurance agents may not be forthcoming with all the information you may need to understand auto insurance. The following terms will give you an idea of what your auto insurance agent is talking about the next time you meet.

Additional Insured

Additional Insured refers to any member of the policy owner's household who may be driving the car. In other words, if any other party named on the cover gets sued, they can file a claim. The additional insured party may or may not be named in the policy. Therefore, in a case where the additional insured parties are not named, they have to file a claim under the name of the primary insured.

If your original policy does not have an additional insured, you can have them added through an amendment referred to as an endorsement. The benefit of having an additional insured is that besides covering your close ones, it also ensures that loss met by any of your additional insured is not taken as your own. A high loss history would increase your premiums.

Auto Insurance Claim

The auto insurance claim might not be a foreign term as the additional insured. However, you need to understand this term. The car insurance claim refers to the request you put in to get payment from the insurance to repair your car, pay for treatment from injuries, and so on.

To file the claim, you need to contact the police as soon as the accident happens. They will help with taking down the details of what happened. This report will be instrumental in filing your claim. You then need to follow several steps of action that will lead you to lay your claim.

Comprehensive Coverage

As the name suggests, a comprehensive cover pays to repair your car for a variety of situations. These situations include collision with an animal, theft, damage from natural disasters, vandalism, falling objects, and even floods. On the flip side, comprehensive coverage does not cover damage due to collision, either to your car or another person's, and your medical expenses.

The comprehensive coverage comes with limits. Typically, the maximum limit that your insurer will pay is the cash value of your car. Anything above this will have to come from your pocket.


17 June 2021

Finding Better Insurance

I have always been someone who loves to work hard for what they have, which is why I started paying attention to how I was protecting my investments. I realized that although I had great medical and dental insurance, my car needed a little extra protection. I started working hard to find an insurance policy that would work well for my needs, and before I knew it, I was able to sign up for a new policy. This blog is all about choosing a car insurance policy that works well for you and your family, so that you don't have to worry about falling short.