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Basic Car Insurance Terms You Need to Know

Let’s say you’re talking to a car insurance agent for the first time. He then starts mumbling words you haven’t heard in your life, and all you do is stare at him with thoughts like, “What are you saying?” running in your head.

Well, you don’t have to get lost in translation! These basic car insurance terms should help you understand the conversation you’re in. 

Accident Report Form

A report that contains critical information about the vehicular accident such as parties involved, citations, and circumstances.

Bodily Injury Liability Coverage (BI)

Bodily Injury Liability Coverage kicks in when you are found to be “at fault” in case of an accident. This coverage pays for the costs of the treatment of injuries and/or death of people in the accident other than you. This will also help pay for your legal defense if you get sued.


A claim is a request to pay for the repairs and reimbursements (of your expenses). Again, in case of an accident, you will have to submit a claim to your car insurance company.

Claims Adjuster

A claim adjuster investigates and settles the claims to make sure that everyone involved will receive fair compensation.

Collision Coverage

Collision coverage helps pay for damage caused by an accident with another car.

Comprehensive Coverage

Comprehensive insurance coverage helps pay for any repair or damage caused by animals, vandalism, fire, theft, etc. 

Covered Loss

Damages that are covered under your car insurance policy.


A deductible is the amount of money that you contribute out of pocket for repairs. In case of an accident, you will take your car to its manufacturer to have it checked and repaired. Car insurance companies usually ask for a deductible before you can have your car repaired. The higher the deductible, the lower the premium.


This refers to situations that are not covered by your car insurance policy. 


This is your contract or a written agreement between you and the car insurance company.


This is the amount of money you pay for your car insurance coverage to keep it in force. A premium can be paid monthly, quarterly or yearly. 

Compare car insurance coverage and quotes at GoBear Philippines to find the best deals. 

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