Whether your vehicle is for your business or your home, your auto insurance policy is sure to be riddled with confusing jargon. That’s why Michigan First Insurance Agency is here to help you understand your insurance policy every step of the way.
Learn the basics of auto insurance with this glossary:
- At Fault: The party that is found at fault is the one that is legally liable for the damages in an accident.
- Bodily Injury Liability Coverage: If you are at fault, this helps pay the medical costs, loss of income, and even funeral expenses of other people involved in the accident.
- Claim: Any request for payment under the terms of the policy.
- Collision Coverage: This coverage is what pays the damage when the vehicle collides with another car or object.
- Comprehensive Coverage: If your car is damaged from anything other than a collision, the comprehensive coverage will pay the damage. If your car is stolen, vandalized, or hit with a natural disaster, you’re covered.
- Deductible: The portion of a claim that you pay out of pocket.
- Driver Status: People can be added to your policy with one of the following driver status options:
- Rated – A person that actively drives the vehicles on the policy
- Excluded – This person is not allowed to drive the vehicles and will not be covered in an accident
- Listed – A member of your household who doesn’t frequently drive the vehicles on the policy.
- Premium: The price of the policy that you pay in exchange for coverage.
- Property Damage Liability: Helps pay the repairs or even replacement of another driver’s car.
If you’re unsure about any terms or what you should be looking for in a policy, ask your insurance agent for help. Looking for a quote on auto or commercial vehicle insurance? Call Michigan First Insurance Agency at 844-788-0818 or learn more online here.