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Ada, OK 74820

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Understanding Auto Insurance Policy Terms

When it comes to understanding your auto insurance policy, you might have a hard time understanding the usual auto insurance jargon.  Fortunately, though, there are several terms found in almost all policies that are simple to understand.  Here’s a closer look at understanding auto insurance policy terms.  

Anti-theft device

Cars that are equipped with an anti-theft device usually enjoy lower premium rates than cars that don’t have one.  An anti-theft device not only helps protect car owners from getting their cars stolen, but the devices can often provide GPS features, which helps relocate cars that have been stolen by a thief. 

Bodily injury liability coverage

Bodily insurance pays for any injuries or deaths that occur as a result of the policyholder’s fault.  Many times, this type of coverage will provide compensation for legal defense costs, too.  

Comprehensive coverage

Comprehensive coverage is of the utmost value because it tends to cover damage to a car that occurred as a result of extreme weather conditions — flooding, windstorm, fire, etc. — and it also provides coverage when the policyholder hits an animal with the car. 


Your deductible is the amount you have agreed to pay out of your pocket before any insurance coverage kicks in.  Remember, the higher your deductible, the lower your insurance premiums will be.  The lower your deductible, the higher your rates will be, but if you were to be involved in a claim, your deductible will be much more affordable.

Vehicle identification number (VIN)

Without a VIN number, you won’t be able to sell your car or put any type of insurance coverage on it.  The VIN will consist of 17 numbers and letters and will not match any other car’s VIN.

If you have questions about your auto insurance policy, make sure to contact a reputable insurance agent serving the Ada, OK area today.