Tag: Word of the Day

January 5, 2025

Insurance Word of The Day

Collision Coverage:

Collision coverage is a type of auto insurance that pays for damage to your vehicle, resulting from a collision with another vehicle or object, regardless of fault. It’s designed to help cover repair or replacement costs of your car after an accident.


Imagine you’re driving your car and accidentally collide with a tree. The impact causes significant damage to your vehicle. Since you have collision coverage, your insurance company will help cover the repair costs for the damage caused by the collision, after you pay your deductible. This can help alleviate the financial burden of the accident and get your car back on the road.

Camara’s Corner

January 3, 2025

Insurance Word of the Day

Insured

The “insured” is the person or entity covered by an insurance policy. They are the ones who receive financial protection or benefits in case of a covered event or loss.

Let’s say you have a homeowner’s insurance policy. In this case, you (the homeowner) are the insured. If your house sustains damage from a covered event, such as a fire, you (as the insured) will receive compensation from the insurance company to cover the repair costs.

Camara’s Corner

January 2, 2025
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Insurance Word of the Day

Deductible

A deductible is the amount of money you need to pay out-of-pocket for an insurance claim before your insurance coverage kicks in. Once you’ve met your deductible, your insurer will start paying for covered expenses.

EXAMPLE

Let’s say you have an auto insurance policy with a $500 deductible. One day, you get into an accident, and the total cost to repair your car is $2,000. You would pay the first $500 of the repair cost (your deductible), and then your insurance company would cover the remaining $1,500.

In essence, the deductible is the amount you’re responsible for before your insurance kicks in to cover the rest.