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Understanding the different terms in car insurance
Home » Insurance » Shopping for Car Insurance » Understanding the different terms in car insuranceThese are some of the main terms in the field of car insurance. Without the basic knowledge of these terms, the shopping for car insurance may be increasingly difficult. While many of these terms are very common for all insurance fields, the terms may need a little tweaking for the world of car insurance.
• Insured Party - this is you. The person that buys insurance from an insurance company.
• Deductible - the amount that the insured party must pay before the insurance company begins paying for an accident claim. If you submit a claim for 1000 dollars and your deductible is 300 dollars, then you will only get 700 dollars.
• Claim - an amount of money that is requested by the insured party because of an accident for the repair or replacement of a vehicle.
• Premium Charges - this is the amount of money charged to the insured party to cover possible claims for the company. Everyone has a premium charge that has insurance.
• Limit - the amount of money that the different insurance coverage that allow for a maximum claim. If you only have a 25,000-dollar limit then no matter how much your car is over 25,000, you will only get that amount of money - minus your deductible of course.
• Actuary - an employee of a car insurance company that determines how much risk that an insured party will represent.
• Liability - the type of insurance that covers what an insured party does to another car in case of an accident.
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