Car insurance Education

In the spirit of education as a vehicle owner you might know about the importance of having insurance. Everyone mostly has their insurance policies in place but somehow don’t understand all the terminology. There is nothing to be embarrassed about if this is the case. Insurance usually includes a lot of paperwork and intricate terms and conditions. In this article we will be discussing these terms that will be in your policy wording and that is important to understand. This is simply and educational article for adults about insurance.

Car insurance Education

Comprehensive Cover

Comprehensive cover means you are covered for almost every bad occurrence and usually is the best option for most people. Most times if you purchase a vehicle, banks would require full comprehensive cover. In other words you won’t just be covered for a collision, you will also enjoy cover for example hail damage or a tree falling on your car. Take a look at car insurance quotes Florida to obtain a free quote.


This is the item that you really want to know about. The deductible amount is the amount you will be held liable for in the event of a claim. There are instances where individuals opt for a lower premium and higher excess option. This is ideal if you know you have spare cash available to cover the deductible. It is recommended that you check your policy documents for any applied excesses. Click here to read more about excess or deductible.


This is the amount you are liable to pay to the Insurance Company to cover you. It is fairly simple, pay your premium and you are covered. Simply put it is like going to a cinema to watch a movie; you will not be able to enjoy the movie if you don’t pay the cover charge. The same rule applies, insurance needs to be paid up front and covers you as you pay. There are certain Insurance companies that will give you a grace period if your payments are behind however it is the best thing to stay up to date.

Insurance Policy

This is the agreement between yourself and the insurance company and contains details about what is covered and what is not covered. Even if there was a verbal or written agreement between you and the insurance company there will always be a document version of your insurance agreement.

Accident report form

This is a very important document that is drawn up with the help of the police at any accident or collision scene. This would include the circumstances, who was involved and citations. This document assists the insurance adjusters in determining the outcome of the claim. Click here to see an example of an accident report form.

Sum insured

This is the amount that the insurance company pays out in the event of a claim. This could be a cash value or replacement value depending on the selected option. There are various situations where an insurance company will replace or repair the vehicle depending on the severity of the loss.

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