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Confusing Car Insurance Claims

September 5, 2015 Hastings and Hastings

The world of car insurance can be very confusing. Most people pay hundreds or thousands of dollars a year to protect themselves with insurance, yet they don’t even know what they are really paying for. Car insurance policies are covered in strange terms and incomprehensible phrases. What is my deductible? What is my premium? What is personal injury protection? Is comprehensive coverage really all that comprehensive? Collision coverage? Aren’t all accidents collisions? Learning to understand these phrases can give you a leg up when dealing with your insurance company or when shopping for new insurance.

Deductible – The deductible is the amount you will have to pay directly out of your pocket every time you file a collision claim. If your deductible is $500 dollars, you will have to pay $500 dollars of your own money on any repairs before your insurance company pays a dime. One possible way to reduce your deductible is by paying a higher premium.

Premium – The premium is the amount you pay every month to retain the service of your insurance company. The premium is determined by factors including age, health, driving history, and car type. Paying a higher premium usually results in having a lower deductible.

Personal Injury Protection – This covers the expenses of your own medical treatment in the result of an injury. This coverage can also cover the loss of wages or time spent away from work.

Comprehensive Coverage – Comprehensive coverage, contrary to how it sounds, does not cover everything. Comprehensive coverage protects you from anything other than collisions. This list could include damage from: vandalism, theft, fire, flooding, or even explosions!

Collision Coverage – Collision coverage covers you in the event of a collision, or what we commonly call a car accident.