How to Understand Car Insurance Quotes


There are a lot of terminologies included in insurance policies, and if you want to get the most out of your car insurance quotes, it is important to understand these terms.  Thoroughly understanding the conditions and catchwords will make you better prepared in the event of a claim.  When you are in an accident you can insurance assures you that you need not spend your hard earned savings for repair or replacement of your damaged car.

It is important to understand the various limitations, conditions and terms of y our insurance policy.  This understanding will give you great peace of mind, and it will make you knowledgeable about the insurance company's legal and practical procedures.

Seeing so many terms in your permanent life insurance quote can be overwhelming.  There are also conditions and buzzwords that appear in our insurance policies that we may not be familiar with.  Many people simply agree to the insurance stipulations even without understanding them just so to get a vehicle insurance.

Below are some words commonly used by insurance companies which can give you information so that you can make a sound decision on the insurance policy that you will agree to.

A policy schedule or coversheet is the confirmation summarizing all of the specific information of your insurance policy.  This is because if you want to get a reliable car insurance you need to enter into a contract, and when you have signed the contract the insurance company is obliged to confirm the conclusion of the contract in writing within 30 days. Learn more about car insurance at

When the insured item, your car, was involved in an accident and it was severely damaged, you submit a claim to your insurance company so that they can give you the finances needed to put the item back in its original state.  The insurance company can accept or deny claims based on the terms and conditions of the policy. 

The agreed amount that the policyholder is liable to pay in the event of an insurance claim settlement is called the excess.

Risks that can cause damage to your car are called perils.  Accidents, intentional damage, theft, hijacking, fire or explosion, attempted theft or hijacking, earthquake, storm, hail, flood, snow, and glass damage are the events which constitute perils.

To make sure that your insured item is covered you pay a premium, which is the amount of money you pay upfront annually or monthly.

The selling price of your vehicle on the average is its retail value.  An insurance for retail value would give you a value closest to the replacement cost.

If you get the average between the vehicle's retail and trade values, you get the market value.

The average price that a car dealer will pay for your vehicle is its trade value.  It is the lowest value.

Understanding your quotes about health insurance involves reading through the document and using their definitions for better understanding.  with the definitions above, you will have a better understanding of the complexities of car insurance terminology.