5 Terms You Need to Know About Auto Insurance

By: Admin

5 Terms You Need to Know About Auto Insurance

Auto insurance, like all insurances, can be filled to the brim with jargon, terminology and concepts that may read like Latin to the uninitiated. It is understandable to be a bit intimidated at the research phase of shopping for new auto insurance, but you deserve to know exactly what you are paying for before signing up for coverage.

Key Concepts and Terms to Consider in Your Auto Insurance Plan

  • No-Fault Insurance: In basic terms, no-fault insurance ensures that drivers cannot sue in the case of a car accident unless there are substantial injuries associated with the crash. Unlike in other insurance plans, no-fault insurance mandates that the insurance company, not the at-fault driver, pays for damages.
  • Uninsured Motorist Coverage (UM)/Underinsured Motorist Coverage (UIM): If an uninsured or underinsured driver causes damage to your car or injury to your person, this coverage ensures that you are still covered. A shocking number of motorists still drive uninsured, making this coverage more than just an upcharge or add-on to your auto insurance. You will be asked if you want stacking and non-stacking. We always recommend stacking.
  • Personal Injury Protection (PIP): PIP coverage pays for medical and funeral expenses, within set limits, of the insured driver, passengers within the driver’s car and/or pedestrians struck by the driver.
  • Deductibles: This is the amount you pay out-of-pocket after a claim is filed, but before your insurance company pays off the remainder of the claim. Generally, the higher the deductible, the lower the premium.
  • Premiums: Premiums are often paid to the insurer on a monthly, semi-annually or yearly basis, granting you your auto insurance coverage. As mentioned above, premiums often directly correlate with deductibles, with higher premiums leading to lower deductibles.

Though these explanations just scratch the surface of auto insurance concepts and terminology, your insurer should be able to tell you exactly what you are and are not covered for in the case you or a loved one are involved in an accident.

In the unfortunate instance that you are involved in an accident, please do not hesitate to contact us to speak with an experienced car accident liability attorney at 407-841-7699. For additional resources, keep checking our blog, LIKE us on Facebook and follow us on Twitter for more helpful hints and to always be informed about best practices in law.

 

Testimonials

On September 29, 2015, a serious auto crash changed our lives forever. Injuries sustained by my husband and I resulted in a long hospital stay and several subsequent surgeries. Two years later, we are both still dealing with injury related issues. Within a few days of the crash, we asked a relative about getting an attorney and they recommended Tom DeLattre (Wieland Hilado & DeLattre). Tom returned my husband’s call that same day and arranged to meet with us at the hospital. He explained the process and assured us that he would handle the auto insurance companies. He explained that our job was to work on our recovery. He was always available for questions and would return calls on weekends and while on vacation. We are very happy with the fair settlement that Tom DeLattre worked out with the insurance companies. I would not hesitate to recommend him to friends or other family members.

– L. Newsome

When someone does such a phenomenal a job as Al has done for us,it’s hard to find the right words to thank him and his office for all the work that was done in our case. We would not have gotten anywhere without his knowledge and help. Until we actually saw all of the “HOMEWORK” that Al did,we had no idea how much work that had been put into our case. 5 stars for Al and his team for the excellent work in delivering a fair and just settlement.

– Juanita