Buying a car insurance policy is like making a
contract between you and an insurance company.
You promise to pay a certain amount of money
on a regular basis. They promise to pay for
specific car-related expenses as long as the policy
is in effect. Before we get into more detail, let’s
define some basic car insurance terms.
PREMIUM
The premium is how much you will be charged
for each type of coverage you choose – basically,
how much this whole thing is going to cost you.
POLICY PERIOD
Your insurance coverage is only in effect during
the period specified in your policy.
DEDUCTIBLE
A deductible is the amount of money that you
pay BEFORE the insurance money kicks in.
EXCLUSIONS
Exclusions are all things NOT covered by your
policy. These are important to know before you
are involved in an accident.
CLAIM
A claim is a request you make to your insurance
company asking them to pay for a loss due to an
accident or for other damage (such as theft.)
