To better understand auto insurance terminology and to choose the best coverage that fits your needs, talk to our agents.

It may be helpful to also review some of the auto insurance key definitions:

• Term: A policy term is the length of time that your insurance policy is valid. Many policies have a term of 6-12 months.
• Deductible: This is the maximum amount you will pay for repairs and other costs in the case of an accident. You choose the amount of the deductible, and it should the highest amount you can comfortably pay out of pocket.
• Premium: Your monthly payments. A higher deductible means lower premiums. State regulations, driving statistics in your area, and other factors can also contribute to the amount of your premium.
• Liability: Basically, this denotes your legal responsibility. If you cause an accident, you may be found liable for the damages to your own car and the other car(s).
• Limits: This is the maximum amount an insurance company will pay for a covered loss. In most states, laws pinpoint the minimum insurance limits that drivers must have. 
• VIN: Vehicle Identification Number. This is a 17-digit number unique to every car, containing the serial number and abbreviations for make, model and year. The VIN is important when you buy your auto insurance policy, and when any claims are made.
• Claim: After an accident, a policyholder may file a claim. This simply means they request to be reimbursed for a loss that's covered by car insurance.