Author: Jonas Renfold
Source: ezinearticles.com

Before anyone goes out to purchase car insurance, there are some terms that you should be familiar with first. Insurance, as with many industries, is full of insurance-specific terms that may confuse the average person. The terms I’m going to cover are only the ones associated with car insurance, and any general insurance terms that are needed.

Adjuster: Let’s start with what an Insurance Adjuster is. An Insurance Adjuster is the person who will determine how much of the fault lies with the policy holder (you) when a claim is filed. The adjuster will decide how much liability lies with the insurance company and how much they will pay.

Insurance Agent: This is your representative with the insurance company. Generally, you will make your payments to your agent, set up your account with him or her, and get any questions you might have answered through your Agent.

Comprehensive Insurance: Comprehensive Insurance is insurance that you can optionally purchase that protect your vehicle from damages that aren’t related to a collision. This may include animal damage, weather, flood or other such emergencies. Sometimes comprehensive insurance covers when your vehicle breaks down as well.

Deductible: The amount that you, the person being insured, have to pay before the insurance will pay anything. For instance, if you have a $5000 bill with a $1000 deductible, you will be required to pay the $1000 before you insurance company will pay their $4000.

Insurance Broker: A person or company that has an agreement with several different insurance companies to act as an intermediary between you and the insurance companies, and may be able to find you the best deals.

Liability Insurance: The minimum type of insurance that most states will require you have on your vehicles. Generally, liability insurance will pay for most or all damages incurred to another vehicle when you got into a collision with it.

Premium: A Premium is the price you’ll pay per month or year for your insurance coverage.

I hope that understanding some of these basic terms will help you in shopping for insurance. Always remember, if there is something you don’t understand, or a term that is not explained here that you are not familiar with, ask your agent to explain it to you. Good luck with your search for the perfect insurance.

If you need further help please see my articles on Comprehensive Car Insurance and Car Insurance Brokers.