Terms You Should Know: Auto Insurance

Not sure what a word could mean in the insurance world. Here are a few frequently used insurance terms with your Auto Insurance:

  • Actual cash value: cost of replacing the property minus an allowance for depreciation.
  • Bodily injury coverage: covers injuries the policyholder causes to someone else. May also cover legal defense fees.
  • Collision coverage: coverage for losses to your own vehicle caused by a collision with another vehicle or object. This coverage doesn’t cover bodily injury or property damage liability resulting from the collision.
  • Comprehensive coverage: covers physical damage caused by events other than collision. These include fire, theft, vandalism, falling objects, flooding and other causes of loss.
  • Deductible: amount you are responsible for paying toward your claim. Policies with higher deductibles cost less.
  • Graduated driver licenses: licenses for younger drivers that may include restrictions, such as on night driving, depending on state.
  • Liability: insurance to cover costs the policyholder is obligated to pay because of bodily injury to others or damage to the property of others.
  • Limits: the most an insurance company will pay for a specific insurance coverage.
  • Property damage coverage: coverage that pays up to certain limits if your property is damaged, destroyed or can no longer be used.
  • Underinsured motorists coverage: if another driver is responsible for an accident that causes injuries to you or your party and the damages are more than that motorist’s limits of liability, this coverage will pay the additional costs up to a certain amount.
  • Uninsured motorists coverage: coverage that pays up to certain limits when an accident resulting in bodily injury to you or others is caused by a motorist who doesn’t have insurance coverage.
Comments are closed for this post, but if you have spotted an error or have additional info that you think should be in this post, feel free to contact us.
We want to protect what matters most to you.

Call us at 847-907-4520 for immediate assistance or get a quote online to find out how we can get you protected.