Auto insurance is the one type of insurance policy every single driver is required to have. But often, we don’t have a true understanding of what is covered by our policy until something happens and we need it. To make sure that you are getting the coverage you need, you will need to understand these 7 auto insurance terms.
- Deductible: Your deductible is the amount you pay out of pocket in the case of a loss or damage to your car. If you have a $500 deductible and the cost of repairs after an accident is $2,000, then you would pay $500 and the insurance company would pay $1,500. If your deductible is increased, you will see your premium go down and if you reduce your deductible, your premium will go up.
- Premium: The premium is how much you pay your insurance company to keep your policy active. Many factors go into your premium: your age, gender, driving record, credit history as well as your job.
- Comprehensive Coverage: Although this coverage is often mistaken for all-inclusive coverage, comprehensive coverage is actually insurance that covers you for damage or loss not caused by a collision. This means natural disasters or something like theft or vandalism, hail damage, hit a deer or other animal.
- Collision: If you get into an accident, collision coverage will pay to fix or replace your vehicle. This coverage protects you if the damage or loss is caused by another driver’s vehicle, as well as damage from hitting something else like a tree or pole.
- Liability: Liability insurance covers bodily injury and property damage when you’re found to be at fault in an accident. The state you live in will set minimum amounts for the liability coverage you are required to carry, but you can carry higher limits, and it is recommended that you do so.
- Road Side Assistance: This is coverage for mechanical break down, towing to the nearest service station, run out of gas or have a flat tire. Some companies even include labor for road side repairs.
- Transportation Expense: Also known as rental car coverage. This allows you to rent a car while it is being repaired or out of use from a covered loss. There is typically a set daily limit up to 30 days but can vary by company.
Donahue-Stangle-Brown Insurance Agency is an independent insurance agency that represents several insurance companies here in Ohio since 1948. Let us do your insurance shopping for you. We quote you with multiple insurance companies. This allows us to provide you with the best coverage at the best price point. We offer a wide range from auto insurance,home insurance, business insurance, business auto insurance, life insurance , annuities and farm insurance. Please contact one of our professionals today at 740-998-5544 in Frankfort or 937-981-2272 in Greenfield. You are also welcome to contact us via EMAIL.