Car Insurance Terms You Should Know

When shopping for car insurance in Oviedo, FL with an agent at Karla Salmon Insurance, there can be a lot of terms to learn. Knowing these terms can help you better understand your policy and your coverage so that you can stay protected.

• Deductible: This is the money that you pay out of pocket before the insurance covers the remainder of the claim. Car insurance deductibles can range between $0 and $1,500.
• Premium: This is the money you pay to the insurance company, so it will pay out claims and provide coverage. This can be paid monthly, every six months, or yearly. Sometimes the premium can also be called the rate. Deductible and premium are connected. A lower deductible usually means a higher premium.
• Bodily Injury Liability: This coverage will protect you if you cause an accident that results in injuries or death to someone. This helps fund legal defenses and covers the judgments against you.
• Collision Coverage: This is a type of insurance that will pay if your car is damaged due to an accident. You aren’t required by law to have this insurance, and it’s optional coverage.
• Comprehensive Coverage: This protects you if something other than an accident damages your car. These events can include theft, animals striking the vehicle, broken windows, natural disasters, storms, or vandalism.
• At Fault: This is a pretty straightforward term that will describe the party responsible for the accident. For most cases, the driver that is at fault will have to pay for the majority of damages.
• Liability Limits: Each policy will set a limit on the amount of money that it will pay for injuries and damages. You can raise limits, but this usually means a rise in premiums.
• Rider: This can also be called an endorsement, and it’s an agreement that is attached to the policy that either decreases or increases the benefits that are typically covered under that policy.

Contact Karla Salmon Insurance, serving Oviedo, FL, to get a quote on auto insurance.