Whether your vehicle is for your business or your home, your auto insurance policy is sure to be riddled with confusing jargon. Here are some basic auto insurance terms:
At Fault: The party that is found at fault is the one that is legally liable for the damages in an accident.
Bodily Injury Liability Coverage: If you are at fault, this helps pay the medical costs, loss of income, and even funeral expenses of other people involved in the accident.
Claim: Any request for payment under the terms of the policy
Collision Coverage: This coverage is what pays the damage when the vehicle collides with another car or object.
Comprehensive Coverage: If your car is damaged from anything other than a collision, the comprehensive coverage will pay the damage. If your car is stolen, vandalized, or hit with a natural disaster, you’re covered.
Deductible: The portion of a claim that you pay out of pocket
Driver Status: People can be added to your policy with one of the following driver status options:
Rated – A person that actively drives the vehicles on the policy
Excluded – This person is not allowed to drive the vehicles and will not be covered in an accident
Listed – A member of your household who doesn’t frequently drive the vehicles on the policy
Premium: The price of the policy that you pay in exchange for coverage
Property Damage Liability: Helps pay the repairs or even replacement of another driver’s car
Not all drivers know about GAP auto insurance, offered through Decatur Earthmover Credit Union. Here’s how it works:
Say you get into a car accident and your car is deemed a total loss. Even worse, insurance will only pay a portion of your loan.
That's when GAP flexes its muscle.
A GAP policy covers the difference between what you owe on a car and what your insurance company will pay. At Decatur Earthmover, our members can cover their vehicle loans with a $395 GAP policy. A DECU GAP policy also includes insurance policy deductible assistance. Even better? Earthmover will give you $1000 towards your next car loan when you finance with us within 90 days.
Smart move, huh.