Car insurance is one of those things that we pay very little attention to, until we need it. However, if we need it, that means we’ve been in an accident or something else negative has happened that is causing us to use our insurance, so it’s important that we understand some basic terms about insurance.
Luckily, if you are looking to learn about car insurance terms in Quinlan, TX, the team at Slaughter Insurance Agency can tell you all the terminology that you need to know.
Claim – A claim is a request made by the policy holder to the insurance company to pay for damages incurred to a vehicle, for medical treatments or other costs related to the covered vehicle/policy holder.
Collision Insurance – This coverage pays for damage to your vehicle in the event that it was in an accident (collision).
Comprehensive Insurance – This type of coverage pays for items that are not related to an accident. This can be anything from theft, to a fire or flood, or even a limb falling from a tree during a storm.
Deductible – This is the amount that you must pay before the insurance company will begin to pay towards your claims. For instance, if you get into a collision and your car sustains $5,000 in damage and you have a $500 deductible, your insurance will pay $4,500 towards the repairs.
Insured – The insured is also known as the policy holder. It is the drivers covered by the insurance policy.
Premium – A premium is how much your insurance costs. Premiums are paid either monthly, every six months or once a year.
Call Slaughter Insurance Agency serving Quinlan, TX today and get all your car insurance questions answered!