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The Allstate Blog | Everyday Peace of Mind

Insurance Made Simple (pt. 1)

Here in part 1 of our “Insurance Made Simple” series, we take a look at some of the basic terms and definitions that one should know about any auto policy: Back in high school when I first started driving, I didn’t think much of insurance at all. If anything, I… Allstate https://i2.wp.com/blog.allstate.com/wp-content/uploads/2010/03/consulting.jpg?fit=2122%2C1415&ssl=1
Insurance Made Simple (pt. 1)
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Here in part 1 of our “Insurance Made Simple” series, we take a look at some of the basic terms and definitions that one should know about any auto policy:

Back in high school when I first started driving, I didn’t think much of insurance at all. If anything, I saw it as just another one of the inconsequential bills that my parents had to pay on a regular basis– y’know, along with other trivial things like tuition or the mortgage. But when I got into my first accident (I, uh, backed into a parked car…sigh), however, it dawned on me that I knew absolutely nothing about my policy. And it was at that point in time that I finally decided to take a little time to better understand the terms of my coverage. I mean, if I’m gonna be crashing into stuff, I might as well know what I’m paying for right?

(All images were taken from Allstate’s Auto Insurance Made Simple site)

Policy period: when the premium is paid by the due date, your policy automatically continues for the time period shown

Premium: the amount paid to insure the vehicle; the total is for all listed vehicles in the policy period

Coverages: if you have more than one car, the coverages will be listed on separate pages for each vehicle

Discounts: any discounts you may have received are listed here

Coverage limit: the maximum limit your insurance company will pay for each covered accident, for each type of coverage

Deductible: the amount you will pay out of pocket for damage to your vehicle for each covered accident

 

For additional information regarding your auto insurance policy, check out:

http://www.allstate.com/know-your-policy/auto-made-simple.aspx

Photo Credit: http://www.flickr.com/photos/horiavarlan/4273168957/