Car insurance termsIf you’ve ever felt lost discussing car insurance coverage, you’re not alone. Insurance lingo can get quite confusing for the average citizen, with providers throwing out terms that leave you running to the internet for an explanation. It’s important to be able to trust your insurance agency and make an informed decision based on the information they put in front of you. Therefore, we’ve compiled a list of some basic car insurance terms and definitions to help you out!

Claim: If you are involved in an accident, you submit a request to your insurance provider to cover or reimburse you for the costs. This request is referred to as a claim.

Comprehensive Coverage: Coverage that pays for any harm to your car that is not accident related i.e. fire, theft, vandalism, animals, etc.

Deductible: What you are responsible for paying rather than what your insurance company pays. Higher deductibles yield lower premiums since you are taking responsibility for larger out-of-pocket payments.

Endorsement: No, we are not talking about athlete’s insane sponsorship deals. In the insurance world, endorsements refer to any change, addition or optional coverage added to a policy. This could be anything from changing your address to adding another member to your policy.

Liability Coverage: Coverage for damages that your car causes to others. There are two types: bodily injury and property damage.

Motor Vehicle Report (MVR): A state record of your violations, suspensions, and other car-related issues that insurance providers use to determine your premium.

Policy: The written agreement decided upon by you and your insurance company that explains what will be covered, what you’ll pay, and all other contract conditions.

Premium: The amount of money you pay to your insurance provider in return for insurance protection.

Under-insured Motorist Coverage (UIM): Coverage that pays for your injuries or damage to your vehicle when the driver who is responsible only has some auto insurance but not enough. This can cover the difference between your bills and the driver’s coverage.

Uninsured Motorist Coverage (UM): Coverage that pays for your injuries or damage to your vehicle when the driver who is responsible does not have adequate auto insurance.

Vehicle Identification Number (VIN): The serial number associated with your vehicle that is determined by the manufacturer. This identifies year, make, model, and all other information that is specific to your car.

This list should help familiarize you with the terminology that your insurance provider might use. At EZ Insurance, we take the time to explain all our terms and coverage options in a way that makes sense to you. If you’re looking for reliable auto insurance coverage in central Texas, call EZ Insurance for an instant quote today.