Car Insurance Terms Defined - Part 2
A Insurance Article Contributed by Brandie King
Car Insurance Terms Defined: Introduction
This article is the second part of a two part series that will help you to understand some of the terms used in your car insurance policy. You should always do your best to understand what is being said when you are reading your policy or discussing it with your insurance agent and this article will start you down that road.
Car Insurance Terms Defined - I, m, N
ID Card - An ID card (identification card) is a card you will receive from your insurance agent when you take out a car insurance policy from them. Your identification card proves that you have car insurance and it should be carried with you at all times. An even better idea is to have one copy of your identification card in every vehicle covered by the policy as well as a copy carried with every person covered by the policy.
Multi Car Discount - Some companies that offer car insurance will also offer a discount on your premiums if you have more than one car insured with them.
Non Owned Auto - A non owned car is any car that is not owned, leased, or borrowed by the person covered on an insurance policy. Non owned auto coverage is a coverage that is normally used on business policies.
Car Insurance Terms Defined - P
Per Occurrence Limit - This is the maximum amount your insurance company will pay for any and all claims stemming from one single accident and includes bodily injury sustained by all people involved in the accident.
Per Person Limit - This is the maximum amount your insurance company will pay for injuries sustained by any one single person during any one single accident.
Physical Damage Coverage - Physical damage coverage is what will cover damage to your car caused by an accident, fire, theft or vandalism of your car, and more.
Pro Rata Cancellation - When your insurance policy is canceled before it's expiration date arrives, you will receive a pro rated amount of your paid premium back. The amount you receive will be based on how much time there is remaining until the expiration date of your policy.
Car Insurance Terms Defined - r-Z
Rental Reimbursement Coverage - This is a coverage that you can be added to your policy that will cover the cost of a rental car if your insured car is out of commission due to a loss covered by your policy. This coverage will not always cover the entire rental cost.
Towing and Labor Coverage - This is a coverage that you can have added to your policy that will cover the cost if your vehicle has to be towed or fixed where it broke down.
Uninsured / Underinsured Motorists Coverage - This coverage will apply when you are involved in accident where the other involved party either has absolutely no insurance or does not have enough insurance to cover the damages they have caused.
