Auto Insurance Terms you need to know

Getting to know all the Auto Insurance terms today

1) Claims Adjuster

A claims adjuster is a representative of an insurance company (automobile in this case) who investigates and settles claims to ensure that all the necessary parties concerned receive the necessary compensation.

2) Comprehensive Coverage

This is the coverage that basically pays for the necessary damages resulting from a covered loss other than a collision such as fire, theft, vandalism or contact with persons or other falling objects.

3) Deductible

The loss coverage for which you are to be responsible as opposed to the portion which your insurance company pays for. Usually it is a well known fact that the higher the deductible the lower the premiums.

4) Premiums

This is basically the amount of money they pay for the insurance coverage and can be paid monthly, quarterly, yearly or according to payment plans you select.

5) Policy

This is a written agreement between the auto insurance company and you which details what exactly the company will cover. How much you will pay and what the terms and conditions will pay for you.

6) Endorsement

Any change or optional coverage that is added to a policy is called an endorsement. Usually this includes adding a new vehicle or driver or even changing your address, adjusting limits and other modifications.

7) Claim

After suffering a loss thats covered by your insurance you might submit a request to your auto insurance company to pay or reimburse your expenses, damages and other financial obligations. By definition that request is called a claim.

8) Bodily injury coverage

If it was your fault for an automobile accident, the bodily injury coverage pays for medical expenses and additional damages for which you are liable.

9) Vehicle Identification Number (VIN)

The serial number that the manufacturer of the car assigns to your vehicle. This identifies the year, model and other important information.

10) Motor Vehicle Report

This is usually a state record that outlines several cases you have done on the road over several years such as violations, infraction and other stuff. The MVR is a good starting point for an autoinsurance company to determine your premium.

11) Covered Loss

Any damage to your vehicle or other people that is covered under your insurance policy

When you are looking for an insurance company to work with, you are better off shopping around. What better way to shop around by getting various insurance quotes that stipulate the premium you are going to pay as well as the policy coverage's.