Dawning in an era where information is easily accessible on the internet, by now you probably have heard about the term insurance. What you probably did not know is that there are terminologies that accompany insurance and there is a need to have an understanding of the same before purchasing your car insurance cover. Whether you want to get a commercial truck insurance or any other type of car insurance, below are some of the terminologies you need to be familiar with;
- Premium
A premium is an amount you pay to the insurance company for your coverage to remain active. The premium you pay is dependent on several factors such as the type of car you drive, where you live, your driving experience and so on. The payments are made depending on the contractual agreement with the insurance company, and most companies offer a flexible payment schedule when it comes to this.
- Deductible
In cases of a car damage to your vehicle, there is an amount you will have to pay from your pocket. That is what is known as the deductible. In cases where your car has been damaged, the insurance company will reimburse the costs only if you have paid your full deductible costs. Keep in mind that the higher the deductible, the lower the premium and vice versa.
- Collision Coverage
As the name suggests, a collision coverage is whereby the insurance company pays to get your car fixed when it has been hit by another vehicle or even a stationary object. It is important to note that the collision coverage only covers the damages on your car and not the car collided with.
- Liability Coverage
Driving on the road is very uncertain as there are times we are the ones who are the victims and sometimes where we are the cause for the accident. Well, a liability coverage comes in handy where you are at fault of causing damage to another party during an accident. It helps you to pay the recovery costs of the other party, medical expenses and keeps you on the safe side in case you get sued.
- Primary Driver And Occasional Driver
A primary driver is a person to whom the car is insured. Often, it includes close family members who are of age and also drive the car. On the other hand, an occasional driver is one who does not drive the car frequently but is still covered under the car insurance policy.