Simply put, auto insurance is a safety net. It is a contract that you
have with an insurance company in which you agree to pay a premium, and
in the event of an accident, the company agrees to pay for your covered
damages, as outlined in your specific insurance auto policy.
It is important to familiarize yourself with the terms 'premium' and 'deductible' when shopping for auto insurance.
An insurance premium is the amount of money your insurance company charges you for a certain policy.
Your deductible is the amount of money that you are responsible
for paying when damages occur as the result of an accident. For example,
if you have $500 in damages as the result of an accident and a $100
deductible on your auto policy, you are responsible for paying $100 of
the total damages.
If you are responsible for causing an accident or damage to other
vehicles, your insurance generally covers the costs of repairs, legal
fees and medical coverage for those who suffered injuries in the
accident. Insurance policies also cover costs incurred when your car is
stolen or vandalized.
No comments:
Post a Comment