Key Terms for Understanding Auto Insurance

Most people shopping for auto insurance go through the challenge of understanding the different terms used. It is even harder for people to buy insurance for the first time as the words are foreign to them. To help you understand, Paragon Independent Insurance Agency of Plano, TX takes you through some key terms you should know.

At Fault

At-fault refers to the person/ party responsible for an accident and liable for any harm caused. If you are the one that caused an accident, automatically, you are responsible for all the resulting costs of property damage and injuries. 

Damages

Most people confuse damage with damage, but the two have different meanings in insurance. Damage is the resulting destruction caused after an accident, while damage is the money that the party at fault is required to pay for the destruction of property and the injuries caused. Often, after the liable party is sued, they will pay damages or compensate the person harmed in the accident.

Liability

Liability is the legal responsibility befalling the party that caused property damage or bodily harm during an accident. The party at fault for the damage is required to pay for the costs of repair and the medical treatment of the injured party.

Coverage

This term is used to refer to the different protection offered by an auto insurance company. It includes items covered under a policy, such as liability coverage, comprehensive coverage, and underinsured/ uninsured coverage.

Premiums

The amount of money you need to pay for your auto policy is referred to as premiums. They are paid in monthly installments or annually and the insurance company will determine the premium you pay.

Claim

This is a formal request to your insurer asking for payments depending on your policy terms.

If you reside in Plano, TX, and want to learn more about auto insurance, contact Paragon Independent Insurance Agency. We are ready to answer any questions you may have.

Why do companies in Texas need commercial insurance?

The Plano, TX area has been one of the fastest-growing areas of the state for the past decade. Those that are in this area could find it is a great place to start and run a business. If you are going to start a business in this area of the state, you need to insure it as well as you can. A commercial insurance plan could be needed for a few different reasons. 

Coverage Will Protect Business

A reason that you should get a commercial plan for your business in Texas is that it can protect the organization. Insurance for a business protects a business in many ways. One form of coverage you will receive is liability support, which will be helpful if you are ever named liable in an accident. You will also benefit by having insurance protection that will cover your commercial assets if they are damaged or stolen.

Coverage is Required

You should also get a commercial plan because it is a requirement. There are many situations in which a business in this state will need to carry insurance. If your business has taken out a loan or raised outside capital, the investor or lender will likely want you to be fully insured. Further, having insurance could be required for you to provide services to certain commercial clients. 

Business owners that operate out of the Plano, TX area are going to have a lot of opportunities for success. To ensure that your business is covered, getting commercial insurance is important. The team with Paragon Independent Insurance Agency can help any business owner build and maintain a commercial insurance plan. When you call Paragon Independent Insurance Agency, you can learn a lot about your different options to ensure you remain fully covered and protected going forward.