Auto insurance rates are contingent upon a variety of factors. You can take steps to lower you auto insurance rates if you maintain a clean driving record, choose the right vehicle, and take other precautionary steps. In this article, we’ll go over some common terms used in auto insurance parlance.
Bodily Injury Liability – This type of insurance will cover the costs incurred if you caused an accident in which someone else was injured or killed.
Collision Insurance – This will pay for damages to your vehicle if the vehicle is involved in a collision. It doesn’t matter who is at fault, collision insurance will cover your vehicle regardless.
Medical Payments – You will purchase limits on medical payments. Medical payments pay for medical and funeral expenses for the driver and any passengers in the car at the time of an accident. The insurance company will provide coverage regardless of who caused the accident.
Property Damage Liability – This insurance covers damages you might cause to the property of someone else as a result of a car accident.
Comprehensive – You can purchase comprehensive insurance, which pays for damages to your car that are unrelated to accidents. Examples are fire, vandalism, flood, glass, debris, graffiti, etc. Most of the time, you need to pay a deductible with comprehensive insurance.
Uninsured Motorist Bodily Injury – The insurance company will pay for the bodily injury or death of you and your passengers if you get into an accident with an uninsured motorist. However, this insurance doesn’t apply to any damages sustained by your vehicle.
These are a few frequently used terms in auto insurance. Familiarize yourself with them, because you’ll need to know them.
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