Important Car Insurance Terms You Need To Be Aware Of

A common issue faced by customers who want to buy insurance is understanding insurance terms and technical jargon used by insurers. While the terminology may seem confusing, one can easily understand most of the important terms by reading about them online. Read further to learn about some common phrases and words you need to be aware of while buying car insurance 1. Premium: The premium is the amount you pay to the insurance company for your coverage. It's usually paid on a monthly, semi-annual, or annual basis. The cost of your premium is influenced by various factors, including your driving history, age, location, type of coverage, and the make and model of your vehicle. 2.Third-Party Insurance Third-party insurance is a basic policy that is mandatory for all car owners by law. This policy compensates the third party for accidental injury, death, or property damage. This policy is also known as “act only” policy or “liability only” insurance since it does not provide ...