We know car insurance terms can be confusing, frustrating and sometimes even intimidating. We don’t think you should have to feel any of those things just to understand your policy. That’s why we’re here to define important terms, un-complicate the jargon and just say it simple.
To get started we’re talking about three terms you should know when shopping for car insurance. Knowing these guys will not only help you save money on car insurance, it’ll help you pick the right amount and type of insurance.
Claim: Consider this the official request to put your (or the person at fault's) insurance to use. Since insurance policies are meant to help cover the costs of car damages and accident-related medical costs, a claim is what reports an incident and starts the process of retrieving the payments to cover those costs. Say a hail storm comes through and dings up your hood. Luckily you have comprehensive coverage, so you call your insurance company to report the damage, and by doing so, you've officially started a claim.
Deductible: This is the amount of money you agree to pay out-of-pocket before insurance coverage kicks in. If you get into an accident that results in $2,400 worth of damages and your deductible is $500, you pay the $500 and your insurance covers the remaining $1900. Your specific deductible amounts will be listed in your declarations.
Declarations: Your insurance coverage summary page highlighting specific details of your chosen coverage, such as types of coverage, limits, costs, deductibles, vehicles covered and drivers on your policy.
Posted October 5, 2016 in insurance know-how.