Glossary of Auto Insurance

By | September 12, 2017

Do you want to get the auto insurance coverage you desire? One basic way of accomplishing this is by learning the terms of auto insurance. Knowing the terms of auto insurance can not be over-emphasized. It is a key factor to your choosing the right insurance policy for your car.

Take a fresh look at some of the interesting terms of auto insurance to better equip you for the booming industry. Here are some of them:

Binder

Temporary agreement stating that the auto insurance policy is under effect but may not necessary is. This agreement is based on the contract both of the policyholder and the insurance company which may not have taken into effect.

When a policy cannot be endorsed immediately, the binder is used to protect the policyholder until the insurance policy has fully gone into effect.

Bodily Injury

This is an unexpected damage or injury to the body of the car driver and/or passengers, pedestrians etc resulting from an accident, storm, wind, or any other form of casualty.

Sometimes, this could be due to negligence on the part of the car driver. Proper care should be taken by car drivers when they are driving on the road.

It could also be the result of negligence on the part of other drivers on the road. Having bodily injury liability coverage should be expected on the part of drivers.

Bodily Injury Liability Coverage

This is also auto insurance policy coverage for the policyholder in the event of car accidents causing bodily injuries for the driver and others involved e.g. passengers and/or pedestrians.

In most cases, the coverage includes the income lost as a result of the accident and even up to medical bills for the victims having the coverage.

There are much benefits of having coverage of bodily injury. One major reason is the reduction of medical expenses.

Normally, all medical expenses of an accident resulting in bodily injury are assumed to be the primary responsibility of the victim or his or her guardian.

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Coverage for bodily injury can be accessed based on the severity of injuries sustained during the cause of the accident and the medical bills involved for such injuries.

As already noted, injuries can be sustained by others not in the vehicle e.g. pedestrian which may result in a legal case against the driver.

In this case, the coverage may also be used to cover the costs of any legal defence involved when the driver is actually found guilty for the injuries sustained by the victims other than him.

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