The first step to getting car insurance is understanding the basics. Our team at Bridgeway Insurance Group in Montgomery, AL can help explain the ten most common terms you need to know to buy a policy and understand the coverage you’re buying.

10 Terms you Need to Know

Premium

The amount you pay to the insurance company is called your premium. The premium is determined by the risk of insuring you, which means how likely you will file a claim in the future. 

Policy

A policy is a contract between the insurer and the insured, so it’s essential to understand what it means. The policy specifies the terms and conditions of your insurance coverage. 

Coverage

Coverage is the amount an insurance company will pay for an insured event. 

Claim

A claim is a request for reimbursement of a loss. Depending on the type of policy, you can either make a claim yourself or with your agent, Bridgeway Insurance Group can make it on your behalf.

Exclusion

Exclusions are things that are not covered by your insurance policy. 

Comprehensive Coverage

Comprehensive coverage is designed to protect your car from any damage that isn’t the result of a collision. This includes fire, theft, and vandalism.

Collision Coverage

Collision coverage covers the damage your car suffers in an accident. This can include hitting another vehicle, being hit by another vehicle, or damaging other cars while parked.

Bodily Injury Liability

It provides protection for you if someone else is injured or killed in a car accident that you caused. 

Deductible

The deductible is the amount you pay for a claim before your insurance company steps in and starts paying for repairs or other costs associated with an accident.

Get Coverage For Your Vehicle

We hope you’ve found this list of auto terms useful! If you have any questions or comments about them, contact our auto insurance specialists at Bridgeway Insurance Group serving the greater Montgomery, AL community.