Auto Insurance Jargon Decoded and Explained

Auto Insurance Jargon SImplified

Car insurance terms that you need to know.

Having coverage is an invaluable investment for safeguarding your vehicle and finances. However, getting auto insurance coverage can contain a lot of jargon that is not normally easy to grab. Before taking the jump to monthly premiums, allow yourself some time to find the right policy to suit your needs. Here are the most common terms that you will need to know.

Actual Cash Value (ACV) – The value of your property, based on the current cost to replace it, minus depreciation.

Collision coverage – Damage to your car when you’re involved in an accident with a vehicle or someone’s property. Insurance will pay for the repair or up to the actual cash value of your vehicle, minus your deductible.

Comprehensive coverage – This is damage to or loss of your vehicle from causes other than an accident such as hail, vandalism, flood, fire, and theft.

Deductible – This is the amount of money that the insured, you, must pay before any payment or coverage kicks in from the insurer.

Liability Insurance – Coverage for injuries to the other party and damages to the other vehicle resulting from an accident that you were at fault for.

Limits – An insurance coverage limit is selected by you when purchasing a policy. It is a pre-arranged amount that describes the maximum an insurance company will pay for damage or injuries for a covered loss.

Medical payments (MedPay) coverage – MedPay is an optional coverage that pays for necessary medical and funeral expenses for covered people, as a result of an auto accident.

Towing and labor coverage – This cover pays for towing charges when your car can’t be driven. It also pays for labor expenses, such as a flat tire, at the location where your vehicle broke down.

Uninsured/underinsured motorist coverage – If you’re involved in an accident with a driver who has no insurance coverage or too little to cover the costs of the expensive accident, this coverage kicks in to help with the remaining costs for your medical bills and car repair costs.

An insurance agent can help you to fill in the gaps and secure the right policy to suit your needs and budget. To get the right car insurancecontact the experts at American Premier Insurance today in Phoenix, Arizona today!