Important Terms of Automobile Insurance You Should Know

If you are looking for good insurance, I suggest you try to compare it first on some free auto insurance quotes that spread around the internet. I have an example website I used when I looked for my car insurance a year ago. Here is the link to website: http://cheapcarinsurancenet.net

But only knowing the website will not really help. You need two more things to aid you when using this site. Know the system and know the terms of automobile insurances. It will be pointless if you want to compare each insurance companies, but did not know the meaning of the terms.


Below are the important terms of automobile insurance I learnt in order to choose best car insurance service for my vehicles. Hope it also will help you.

Comprehensive / All Risk: Also known as ajoint loss. This term means that an insurance service that gives assurance against all risk that listed on the policy book happens to your vehicles such as loss, damage,theft, natural disaster and many more.

Annuitant:Policyholders that eligible for abenefit from insurance companies for a certain period.

Adjustable Premium: The right for insurance companies to change premium cost imposed on the insured certain, for example as the condition of a contract of insurance reform.

Appraisal: Estimation of our car’s quantity and quality.Through appraisal, our insured property’s value will be determined by the insurance company.

Depreciation:Missing or the reduced value or the differences in thevalue of objects at different times.

Insurable Interest: You said to have an interest in the object insured if you had suffered a financial loss case of natural disasters that raises loss or damage on the object. This condition will allow you to insure possessions or your interests. When acase of natural disasters over an object insured and proven that you do not have financial interest over the object, then you are not eligible to receive compensation.