Understanding Car Insurance Terms

Have you been looking at different auto insurance policies only to find you aren’t familiar with the vernacular? Are you interested in saving money on your auto insurance but aren’t sure what the different terms and services mean?

When you’re trying to locate the best auto insurance plan for you, it’s important that you understand the meanings of the different terms and services available to you. Since this can be tricky, we’ve put together an informative and educational guide to help you get the auto insurance plan you’ve been looking for in no time at all. Below are some of the most common and important terms you’ll need to know to get started.

Property Damage Liability (PD) - This coverage pays for damage done to cars and other property as a result of an accident you are legally liable for.

Bodily Injury Liability (BI) - This part of your coverage pays for injuries to parties other than yourself as a result of an accident you are legally liable for. In most states, this coverage pays for medical expenses, lost wages and pain and suffering up to your policy limits.

Collision – This covers damage caused to your vehicle as a result of an accident, regardless of who is at fault. If you’re leasing or financing your automobile, you’ll be required to carry collision coverage.

Comprehensive – This coverage is for damage to your automobile resulting from incidents other than a collision. Examples of these incidences are: flood, hail, fire, theft, vandalism, falling or flying objects, wind and collision with an animal.

Deductible – This is the amount of the damages you agree to pay when an accident of loss occurs. For instance, if you have a $500 deductible and $800 worth of damage, you’ll pay $500 and your insurance provider will pay $300.

Uninsured/ Underinsured Motorist Coverage (UM) – This part of your insurance will help cover medical expenses and property damage when the driver at fault has no insurance or is underinsured. For instance, if another driver causes an accident with you and has no car insurance, this is the part of your insurance that will help pay for damages and medical attention.

Now that you understand the most important terms in locating the best car insurance, get started right now in locating the best car insurance plans for your needs.