When you’re trying to get a good car insurance policy, there are a lot of things to think about. Of course, before you can really even get started in the vehicle insurance game, you will need to make sure that you actually understand the jargon behind car insurance. It’s one thing to think that you do, until you actually sit down to get an auto insurance quote online. This is when people usually realize there are many more terms to learn than they first imagined.
Does it have to be this way, where you’re so frustrated from not knowing what’s going on that you just can’t make any decisions? The truth is that it really doesn’t have to be this way. Here are a few choice terms that you’ll run into.
Got an accident? If it’s your first one, you could get an insurance policy where your first accident doesn’t count against you. This actually benefits you in two ways. First and foremost, you won’t have to pay a deductible for the accident. The second benefit is that you won’t see your premium rise because you’ve become “risky” to the car insurance company. Truly a win-win situation!
Comprehensive coverage refers to all of the events that have nothing to do with car to car collisions. For example, if you were to hit a telephone pole, this would be covered under comprehensive coverage. In addition, if you were to hit a deer, this too is covered under comprehensive coverage. Is this coverage right for you? Generally speaking, comprehensive coverage is a great fit for newer cars and cars that still have a car loan attached to them, since you will have to protect the car against damage of all kinds as part of your contract with the loan company.
Every policy has limits. The insurance company will only cover so much. Over that amount and you will be responsible for the damages — something that the other party can take you to court to collect.
Deductibles represent the money that you will need to pay in the event that you have an accident. This is the total amount that must be paid before insurance services are rendered. It’s really the only way to make sure that the insurance company steps in to take care of your needs.
Personal Injury Protection
The name says it all — protection against medical bills and costs during a collision event. It’s generally required as part of liability coverage, since you will need to cover the other person’s medical costs if you hit them.
Rental reimbursement is all about the rental car that you’ll need after an accident. Since this is costly to get on its own, most people ant to bundle it with their car insurance policies for best results. Usually there is a limit of days as well as a total dollar amount.
Roadside assistance is a service where someone will come out to you to handle tire changes, towing, and other problems that you might run into on the open road.
Uninsured / Underinsured Motorist Coverage
If you get nothing else on your insurance policy, this is the best addition to get. Uninsured motorist coverage means that if you were to get into a collision with a driver that doesn’t have insurance, your insurance company will take care of your damages. Underinsured coverage works in the same way, except the assumption is the other driver has coverage of some kind, just not enough to fully cover the event of collision.
There are more terms than just this, but these are the terms that you’re going to find the most as you begin looking up car insurance quotes. As long as you pay attention tot he terms, there shouldn’t be any reason why you can’t get the perfect policy for your car!