There are six primary facets of an auto policy. Some coverage’s are required by law. These coverage’s are:

The auto insurance premium is the price that a policyholder pays for the desired coverage in their area. When establishing a premium the companies take a variety of variables into account. Things such as

A binder is a temporary, usually 30 day, verification of coverage. This is issued prior to the actual policy.

Comprehensive Coverage is the part of the policy that covers damage to the policyholder’s car that is not related to a collision. Examples of this are fire , hail, flood, theft and glass breakage). This coverage is usually purchased with Collision Coverage

This is the portion of the policy that states the name and address of the policyholder, the property/car insured, the location that the car is garaged in, the policy period and the premium. It is often referred to as the “dec page”.

The deductible is the money that is paid by the policyholder in the event of a loss. It is typically a specified dollar amount ($250/$500/$1000). The higher the deductible, the lower the premium that is charged.

Lying, concealment or making of misleading statements by policyholders to receive payment from an insurance company on a claim that otherwise may not have been paid.

This coverage is typically provided to businesses and is only for autos leased, hired rented or borrowed in the businesses name.

A method of making large financial losses more affordable by pooling monies of these risks together and transferring them to the insurance company. These premium groups then pay the losses out of the pool of monies made up of the premium dollars submitted.

The portion of the policy that the policyholder is legally liable to pay as a result of bodily injury or property damage caused by them to another person or persons.