Sometimes trying to interpret the terms that are often used in relation to automobiles when it comes to automobile insurance policies and claims can be quite difficult. This is the reason that it is so important to make sure that you have a thorough understanding of the terms that are commonly used associated with automobile insurance. Sometimes there are terms and words that may be brought up by an insurance agent or lawyer that was not mentioned in the agreement of your policy. Having a better understanding of the common terms will allow you to make sure that you are fully protecting yourself and taking advantage of your policy as much as possible.
Common Terms
Additional Insured - This is referring to a person or entity who is not named as someone that is insured by the policy, although there are provisions known as endorsements that provide some level of protection for these people under your policy.
Bodily Injury Liability - Insurance coverage that you will be able to receive if you are liable legally for having caused damage or injury to another person in an auto accident. It will pay for the coasts associated with the injuries of the person through payments and will also pay for your legal defense in many cases.
Liability Insurance - Aspects of the policy are often coupled with property damage policies
Claim - Refers to the request by the policyholder to their insurance company in order to take advantage of their coverage under their insurance policy.
Collision Insurance - This is referring to the section of your insurance policy that allows for coverage to be paid out for an automobile collision with an object or another vehicle that results in damage to or loss of your vehicle.
Comprehensive Insurance - Insurance coverage that is designed to reimburse you for damage that occurs under circumstances that are not considered to be a collision. This can relate to anything such as general wear and tear as well as hail, theft, and mischief as well as damage from flood, falling debris, explosions, and earthquakes.
