When you start to think of insurance, not many people know where to start.
Don’t fret. There are people who can help you out.
You don’t need to know EVERYTHING when it comes to insurance, just some of the most commonly used terms.
Why should you take the time to learn these terms? How can you know if you have enough coverage or have the right policy to fit your needs?
Well, here are 10 terms we think everyone should know about insurance.
A deductible is money you pay out of your own pocket before an insurance company covers the rest of a claim. Car insurance deductibles are between $0 and $1,500, depending on the policy and company.
Keep in mind, a high deductible means a lower premium. Also, a low deductible means a higher premium. A higher deductible can help you save money every month. A low deductible will leave you with a big bill to pay when you file a claim.
You pay premiums to an insurer so they will provide coverage and pay claims for you. Usually, you can pay them yearly, every 6 months, or monthly. Some insurance companies offer discounts to those who pay in full.
If you think you’re paying too much for your home or auto policy, let us compare with our multiple companies we offer here.
Bodily Injury Liability
This kind of coverage protects you if you cause an accident that injures or kills someone. It does that by funding your legal defense and covering judgements against you if you happen to be sued. It can also pay for the lost wages or medical expenses of anyone you injure in a crash. Just remember the value of your policy determines how much coverage you have. Bodily Injury Liability does not cover you or anyone else in your car. That’s why we recommend adding Medical Payments coverage to your policy!
Collision coverage is enacted if your car is damaged by hitting another vehicle or object. This coverage will pay for damage to your car without regard to who caused the accident. This coverage is not required by law, but it is great to have in case of an accident.
Comprehensive coverage is also known as ‘physical damage other than collision’. This protects you from hail, vandalism, flood, fire, and theft. This is also not required by law but great to have especially with our crazy Oklahoma storms.
Property Damage Coverage
Property damage liability covers you if you’re liable for an accident. This will pay for damage to others’ property resulting from the accident.
This form of coverage will protect you and your passengers if you are injured in an accident.
Uninsured Motorist Coverage
Uninsured motorist coverage comes in two forms, bodily injury and property. Bodily injury covers you and your passengers if an uninsured driver hits and injures you. Property covers if an uninsured driver hits and damages your car. Oklahoma is one of the top states for uninsured drivers. Make sure you are covered in case of an accident!
“Full coverage” is a common term that people use to describe how much auto insurance coverage they have. Though there is no such thing as “full coverage”, it often implies that the policy has more than just liability coverage.
A written agreement attached to a policy expanding or limiting the benefits otherwise payable under the policy.
Some information used for this article is from: https://quotewizard.com/auto-insurance/10-auto-insurance-terms-you-should-know
If you have any questions about this article or about your policy, give us a call at 918-794-4000!!