So, you’ve finally purchased a car, but before you can be able to drive it in any street here in Michigan, you sure need an auto owners insurance Gibraltar MI policy. We all know that the word “insurance” is a very complicated term and it involves many words that can be hard to understand. Whether you are a first time driver or someone who still doesn’t get the ins and outs of this procedure, we’re sharing a glossary of essential words you might be encountering when you buy your auto insurance.
- Insurance groups. This usually range from 1-50; the lower the group, the lower your insurance. This term is greatly influenced by the kind of car you have. If you’re curious to know where you belong, there are insurance quotes which allows you to determine whether you’re in the lower or higher set.
- Insurance Premium. Your insurance premium is the amount you will pay for your coverage. There are many ways you can pay your premium; one is via lump sum per year, or through monthly installments. Insurance premium differs per driver, but recently, auto owners insurance Gibraltar MI increased. See the reason why: https://insurancebyfrost.com/3-reasons-auto-owners-insurance-gibraltar-mi-policy-rate-increases/.
- Comprehensive insurance. This type of insurance covers your vehicle and any property, person or car you have damaged. While this can be more expensive than other insurance types, this offers greater security for you and your auto.
- Claim. If you have caused an accident and your insurance company is required to pay for any action related to the damage, then you can make a claim.
- Third party, fire & theft. A basic part of insurance, this term states that anything you hit is part of the insurance. Fire and theft is often included in this set, which means that you are covered when your car is stolen or if it catches fire.
- Named driver. When the insurance is under your name, then you are the Named driver. Unless you name another person as a Named Driver, they cannot drive the car. Adding Named Drivers to your policy can lessen the amount of your insurance premium.
Your auto owners insurance Gibraltar MI policy coverage is a necessity, as shared in this video: http://www.youtube.com/watch?v=NnDXlgbkaFg. Make sure you purchases your coverage wisely by remembering these terms when buying your policy.