Basic Terms and Definitions With Regards to Car Insurance
One of the most important things that every motorist ought to know about car insurance are its basic terms and expressions.
It may not seem much, and there's no doubt that you will be able to pick up a few words when you purchase a new policy, but the fact remains that you should do your best to learn a few of them before venturing out to find the policy you need.
They can teach a few things with regards to how car insurance works and how they may benefit you in the long run.
Coverage - This term of course covers the financial protection that you're entitled to receive in a particular incident or mishap.
Its amount will vary according to your premiums as well as the extent of the policy that you are paying for.
Premiums - This refers to the cost of purchasing an insurance coverage.
It can either be paid in a lump sum or through monthly or annual installments throughout the duration of the policy.
In the event that you cannot continue paying for your existing premiums, your insurance policy will be cancelled until you are able to pay the outstanding amount within a given time period.
Mileage - In most cases, mileage really refers to annual mileage, but sometimes it can also refer to daily mileage.
Your mileage is important to car insurance providers as it tells them your relative risk to traffic accidents.
Generally speaking, those who consistently drive long distances are more likely to have higher premiums than those who drive less.
At Fault - This term refers to the person or persons who is responsible for the traffic accident.
Bodily Injury/Damage - This term refers to any injuries to a person's body, no matter how large or small.
Medical coverage is designed specifically to cover any expenses related to the category of "Bodily Injury.
" Property Damage - This term is quite broad in the sense that it not only covers a person's car, but also any other object that he or she may be carrying within the car at the time of traffic accident.
This term may also refer to damages caused to objects and property which are not inside any vehicle, such as fences or lawn ornaments.
No Fault - Despite what its name may suggest, No fault insurance does not necessarily mean that no one is at fault.
There will always be someone to blame in cases of car accidents.
However, what this term refers to a situation where you will be responsible for your own expenses and damages whether or not you were the one who caused the accident.
It may not seem much, and there's no doubt that you will be able to pick up a few words when you purchase a new policy, but the fact remains that you should do your best to learn a few of them before venturing out to find the policy you need.
They can teach a few things with regards to how car insurance works and how they may benefit you in the long run.
Coverage - This term of course covers the financial protection that you're entitled to receive in a particular incident or mishap.
Its amount will vary according to your premiums as well as the extent of the policy that you are paying for.
Premiums - This refers to the cost of purchasing an insurance coverage.
It can either be paid in a lump sum or through monthly or annual installments throughout the duration of the policy.
In the event that you cannot continue paying for your existing premiums, your insurance policy will be cancelled until you are able to pay the outstanding amount within a given time period.
Mileage - In most cases, mileage really refers to annual mileage, but sometimes it can also refer to daily mileage.
Your mileage is important to car insurance providers as it tells them your relative risk to traffic accidents.
Generally speaking, those who consistently drive long distances are more likely to have higher premiums than those who drive less.
At Fault - This term refers to the person or persons who is responsible for the traffic accident.
Bodily Injury/Damage - This term refers to any injuries to a person's body, no matter how large or small.
Medical coverage is designed specifically to cover any expenses related to the category of "Bodily Injury.
" Property Damage - This term is quite broad in the sense that it not only covers a person's car, but also any other object that he or she may be carrying within the car at the time of traffic accident.
This term may also refer to damages caused to objects and property which are not inside any vehicle, such as fences or lawn ornaments.
No Fault - Despite what its name may suggest, No fault insurance does not necessarily mean that no one is at fault.
There will always be someone to blame in cases of car accidents.
However, what this term refers to a situation where you will be responsible for your own expenses and damages whether or not you were the one who caused the accident.
