The insurance industry can seem mysterious to outsiders. While shopping for policies, you may encounter some unfamiliar terms that make it feel even more confusing. To help you understand the system better, Cobos Insurance Center, a respected insurance agency in Elyria, OH, explains some important car insurance terms to help you feel comfortable speaking to your agent about coverage.
5 Car Insurance Terms That Will Clarify Your Policy
Your premium is the amount you pay for coverage. They are billed monthly, biannually, or annually, depending on the insurer and agency. In any case, failure to pay the premium will lead to cancellation of the policy.
Your policy deductible is the amount you must pay before your insurer starts to contribute. For instance, if you have a $1,000 deductible, but repairs to your car are only $500, you are responsible for the entire cost of repairs. Typically, the larger your deductible is, the lower your premium amount will be.
3. Collision Coverage
Collision coverage pays to repair damage caused to your car while it is moving. This includes collisions, slide-offs, etc. It does not usually cover damages that occur while the vehicle is parked.
4. Comprehensive Coverage
Comprehensive coverage reimburses you for non-collision losses, such as theft, fire, or vandalism. It is different from full coverage, which provides payment for all losses up to the limit of your policy.
5. Uninsured Motorist Coverage
Uninsured and the underinsured motorist coverage protect you if you are in a collision caused by another driver who does not have any—or enough—insurance to cover your damages. It covers you fully if the other driver is uninsured, and it makes up the difference if the other's policy is insufficient.
To find out how to adjust your car insurance coverage or lower your rates, contact the team at Cobos Insurance Center, a trusted and experienced insurance agency with locations in Avon Lake and Elyria, OH. For more than 65 years, they have helped residents and businesses throughout the region design the right coverage at the right price. To learn more about their car insurance options, visit their website. Call (440) 324-3732 to speak with an agent or request a quote.