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Car Insurance Terms

By: brenda

All the US citizens who own a car are required to have insurance cover for their car. It is important to know about car insurance terms. It is because you need to know about the car insurance terms of the policy before purchasing it. There are a number of car insurance terms and terminologies used in US, out of which some of the most important ones are described below.

‘Vehicle Identification Number (VIN)’ is a 17 letters combination which gives the car’s model, make and the year.

‘Full coverage’ is a commonly used car insurance term which describes the auto insurance coverage limit that one has. Also it means that there is extended coverage more than liability coverage in the policy.

‘Driver Status’ refers to the status of a person under some category types which will be under the policies. The categories are given below.

Rated refers to the active vehicle driving person. A person is referred to as Excluded in case he is not allowed to drive a car and in case of an accident will not be added to the policy. Listed are those who according to the policy are non-driving member(s) of the house.

‘Comprehensive coverage’ covers damages done to an insured vehicle due to reasons other than collisions, such as damages due to the action of natural elements like flood, windstorm, fire, theft, vandalism etc.

As the name implies, ‘collision coverage’ covers the damages to your cars when it eventually overturns or collides with other substance. With certain conditions being applied according to the policy, this coverage applies to rented cars also.

‘Policy term’ and ‘policy expiration date’ refers respectively to the period during which the policy is in force and the date when the current policy expires. The policy expiration date is documented on the current policy documents.

Article Source: http://add-articles.com

Brenda is the owner of Car Insurance website. She posts the latest car insurance news, new car insurance quotes, and Old Car insurance quotes.

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