Car Insurance Basics

Buying a car insurance policy is like making a contract between you and an insurance company. You promise to pay a certain amount of money on a regular basis.


They promise to pay for specific car-related expenses as long as the policy is in effect. Before we get into more detail, let’s define some basic car insurance terms.

  1. PREMIUM
  2. POLICY PERIOD
  3. DEDUCTIBLE
  4. EXCLUSIONS
  5. CLAIM

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