08 September 2009

Car Insurance Basics

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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 all this will be charged.

Deductible
A deductible is the amount of money you
Before paying the insurance money kicks in.
Say you return your car into a tree

CLAIM
Your request for a claim to make your insurance
companies asking them to pay damages because of
accident or other damage (such as theft.)

POLICY PERIOD
Your insurance is only valid for
period specified in the policy

EXCLUSIONS
Exclusion is anything NOT covered by the
policy. This is important to know before
involved in an accident.

2 comments

Good post, help where you can still find information on this topic?

Simple but accurate explanation about car insurance. The meaning pf car insurance is explained in such a simple way that in first read I understood the basic concept of making a car insurance. Also some major terms are explained above. I like reading this complete post. Do keep posting about insurance in future also.
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