Common Car Insurance Terms

by Administrator 30. April 2019 06:55

Being aware of commonly used terms when buying car insurance is extremely helpful. This knowledge can help you in choosing a suitable coverage. 

Following are car insurance terms that every buyer should be aware of:

  • Depreciation: This term refers to the decrease in the value of your car over time as you use it.
  • Premium: An amount that the policy holder pays to an insurer for covering the risks stated in the policy. It can be paid monthly, quarterly or every six months.
  • Deductible: It is the amount paid out of your pocket in case of damage prior to any reimbursement by the insurance company. Higher deductible results in lower monthly payments and vice-versa.
  • Collision Coverage: This is an optional coverage that covers damage caused to your vehicle as a result of colliding with another car or object. 
  • Comprehensive Coverage: This coverage pays for the damage caused to your vehicle due to reasons other than a collision. Some covered incidents are theft, broken windows, storms, striking with an animal or a falling object, etc.
  • Declaration Page: This is a page that mentions the summary of coverage you have, its limit & cost as well as information about the vehicle covered.
  • Liability Insurance: The minimum amount of insurance that every vehicle owner is required to carry. It covers damages and injuries caused to the other party due to your fault. It usually has three parts: bodily injury liability per person, bodily injury liability per accident and property damage liability. 
  • Medical Payments Coverage: Also known as MedPay, it covers the expenses for medical bills associated with an accident irrespective of who is at fault. Also, the coverage pays for funeral expenses in the event of death caused due to an auto accident.
  • Uninsured Motorist Coverage: It covers you and your co-passengers in case of injuries or death in an accident if the accident is caused by other driver who is uninsured.
  • Underinsured Motorist Coverage: If in an accident, other driver is at fault & he does not have enough insurance to cover your bills, then this coverage supports you.
  • Gap Insurance: It offers coverage if a vehicle whose lease or loan has not been paid off is stolen or damaged. The coverage protects you from ‘upside-down’ loan. It is also known as loan/lease payoff coverage.
  • Roadside Assistance: It is an add-on coverage that provides towing services in an event of flat tire, mechanical breakdown overheat, lockout and the like.

Shawn Camp Insurance Agency, Inc. offers auto insurance at affordable rates. Clients can also request instant online quote for their convenience. For more details about auto insurance in Killeen, call at (254) 526-0535. You can also visit 2705 E. Stan Schlueter Loop, Suite 101 Killeen, Texas-76542. 


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Updating Your Auto Insurance for 2012

by Administrator 17. January 2012 12:00

Auto insurance policies, when not planned out carefully, can have dangerous gaps in coverage that leave the policyholder at risk for financial problems after an accident, theft, fire or other insurable incident. This year, update your auto insurance policy to consider the following:

Is your limit on pace with car repair costs and value? Auto repair costs don’t always stay the same from year to year; labor, parts and shipping costs can all change drastically leaving you little actual recompense from your policy unless you adjust your limits. Work with your agent to determine what your limits should be based on these expenses and your Kelley Blue Book value.

Do you have enough coverage for the average liability claim? Your automobile coverage will offer you protection from both bodily injury and property damage liabilities, but will it offer you enough? Talk to your agent about a limit that gives you protection based on current-day claims averages and talk about the possibility of adding an umbrella policy for your auto and home liabilities.

Do you need uninsured motorist coverage? You may be insured, but that doesn’t mean every motorist on the road is. Uninsured or underinsured motorist coverage supplements your damages when the person who causes your accident doesn’t have the insurance policy to pay them.

Can you reduce your overall risk exposure? If you’ve just gotten state-required coverage then you’re doing little to protect your own interests in an accident. Without collision and comprehensive you could be exposed to financial losses after an accident, theft, vandalism, fire or other natural disaster.

How affordable are those deductibles? Make sure your deductibles are still practical for your lifestyle. After a job loss, big expense or other life change, large deductibles can become a greater burden than they initially were.

Do you need to add roadside assistance? A breakdown, flat tire, or depleted gas tank can happen to anyone. If you don’t currently have roadside assistance on your policy, don’t wait until you wish you did before you add it.

Should you add loss of use? If you can’t use your car after an insurable incident damages it, how are you going to run errands, get to work and bring the kids to school? With loss of use coverage, your auto policy can keep you on the road by paying your emergency rental car expenses.

We have all the tools you need to compare premiums, set limits and deductibles and choose coverage options. Give us a call to complete your annual auto insurance review and you can start 2012 out on the right foot.

Call us today at (254) 526-0535 to make sure your car insurance in Killeen Texas is up to par or visit our office.