Auto Insurance and Home Insurance Glossary

Auto and Home Insurance

When shopping for auto insurance you will want to be familiar with the terms listed below.  They will help to ensure that you get the best possible deal.

Auto Insurance: Auto insurance will cover you against several types of accidents.  The types of auto insurance that you can buy include comprehensive and collision, bodily injury liability, property damage liability, and medical payments.

Bodily Injury Liability: This will protect you legally in the case of injury or death to another party due to an automobile accident

Collision: This part of auto insurance covers your vehicle in the case of an accident with another car or object.

Comprehensive: This segment of auto insurance covers your vehicle in cases of theft, fire, or an act of vandalism.

Deductible: This is the amount of money that you have to pay before your auto insurance company takes on the remainder of the bill.

Medical Coverage: This part of auto insurance will cover the medical costs of any passengers in your car, or your own medical costs if you are driving a vehicle that is not your own.  May also include funeral costs.

Premium: The amount of money that is paid to remain on an auto insurance policy.

Property Damage Liability: This portion of your auto insurance covers damage to another’s property in the event of an automobile accident.

Vehicle Identification Number: This is also known as a VIN number, and is used to identify a particular car by make, model, and year.

Home Insurance Glossary

When searching for home insurance keep the following terms in mind.  They will help you to get the best deal possible.

Actual Cash Value: Stands for the current cash value of the property with your home insurance policy.

Casualty Insurance: A benefit of home insurance is that this protects you in a legal sense as far as damage to another’s property, or injury to another person.

Coverage A: When it comes to home insurance, this covers your home as well as anything that is attached to it.

Coverage B: Covers anything on your property that is detached from your home such as a shed or garage.

Coverage C: Offers home insurance coverage anywhere in the world for your personal property.

Coverage D: Home insurance covers expenses that you may incur due to having to live elsewhere because of damage to your covered home.

Exclusions: A section of your home insurance policy that notes what type of loss and damage is not included.

Liability Coverage: With home insurance, it covers property damage and bodily injury.

Limit of Liability: If a loss occurs, this is the maximum amount in your home insurance policy that you will have to pay out of pocket.

Property Insurance: An aspect of home insurance that covers real or personal property.

Statutory Limits: The minimum amount of home insurance coverage that is allowed by law.

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