When people purchase car insurance, perhaps the number one question asked is “will I be covered?” As such, a full understanding of the description of coverage that comes with your insurance policy is important. To help you understand your insurance policy, below are some coverage terms you need to know:
Exclusions – These are the opposites of “coverage.” If a situation counts as an “exclusion” in your description of coverage, then it does not apply to your policy and you would not be covered should such an excluded event occur.
Limits – This refers to the amount of benefits an insurance company will pay out when you need to file a claim. States place mandatory minimum limits you must carry for auto insurance. If you think you could exceed your limit when filing a claim, you should consider purchasing additional insurance.
Lapse in Coverage – If you miss the due date on an insurance payment, you may experience a lapse in coverage, or policy lapse. When this occurs, you are not protected by insurance. In the event of a policy lapse, you should contact your AIS representative immediately to find out how you can restore your insurance.
Claims Adjuster – The claims adjuster is a person or organization hired by the insurance company to validate insurance claims and make sure that payouts are fair. A claims adjuster can inspect the damage to your vehicle and recommend to the insurance company how much you should receive in benefits to recoup your loss.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.