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Buying A Car

Deciphering Auto Insurance Terms

Your auto insurance policy is written with a variety of terms that are common parlance within the industry. Those terms are not necessarily ones with which you’re familiar. It pays to understand the terms used in your auto policy. It will save you time and trouble in the event you need to file a claim and its underpaid or denied.

Comprehensive Coverage

This will pay for damage to your covered vehicle or loss for any event other than a collision. It covers fire, theft, vandalism, windstorm and flood.


The deductible is the portion you pay to have your vehicle repaired or replaced. The higher the deductible the more you’ll pay out of pocket, but you’ll typically receive a discount on premiums for carrying a higher deductible.


Your car or truck becomes a 1 owner vehicle the moment you sign the agreement to purchase. It also begins to depreciate – lose value.


This is a change to the policy that alters the original policy in some way. It’s typically used when you want to include additional coverage.


You’re legally responsible and obligated to compensate an individual harmed by your actions. A comprehensive auto policy does this for you.

Liability Limits

This is the maximum amount that the insurer will pay toward a covered event. You choose the coverage limits when you purchase a policy.


This is a type of insurance that will cover lost wages and medical bills, no matter who is at fault in an accident.


Your auto insurance will include named perils for which your insurance will provide coverage and payment.


The premium is the total cost of your insurance. It can be paid all at once for the entire year, or in monthly installments.

Primary Use

This is the primary reason that you use your vehicle. The most common usage is for work, followed by business and pleasure. Work or business may also be the primary usage for a vehicle used a farm, ranch or orchard.


In the insurance industry, this is the money the insurance company pays you for damages on a covered loss if you file a claim.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

We can be found on Social Media at the following links.


The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487