Come to Auto Insurance Terms with Your Agent
Do you get frustrated trying to understand auto insurance agents? With all the industry lingo and jargon, it's like they speak a whole different language.
To make sure you buy exactly and only what you want and need, add this page to your favorites so you can look up a term when you need to. Or study up and be ready for them.
Not every insurance agent is going to try to upsell you or rip you off—especially since they want to keep long-term customers—but it is best to protect yourself.
Auto Insurance Terms
Collision (coverage) – Pays for your vehicle repairs or replacement after a collision with another object. Fault does not matter.
Comprehensive (coverage) – Short for Comprehensive Other Than Collision coverage, this pays for repairs to or replacement of your vehicle from non-collision incidents, including:
- animal damage (deer, raccoons, etc.)
- storm and natural disaster damage
- fire damage
- theft
- hit-and-run damage
Coverage – The situations under which auto insurance will pay for your damages, legal fees, medical costs, or those of the other party. This also usually includes maximum dollar amounts of coverage.
Deductible – What you pay out of pocket for a claim before auto insurance pays.
Liability – Being at fault, your obligation to pay for injuries and damage.
Liability coverage – Auto insurance pays for your legal defense and damages to the other party when you are at fault.
Policy – The complete contract showing the terms of agreement between you and the auto insurance provider. This includes the types and amounts of coverage as well as any other terms, as well as what you pay.
Premium – The price you pay every billing period to keep your auto insurance active.
Go ahead and check auto insurance quotes working in your state.
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