Vehicle Insurance Explained In Simple And Clear Terms
If you are thinking about insuring your car, yet you are clueless about auto insurance, there is nothing that can be of help to you like having vehicle insurance explained to you in simple and clear terms. This is because without knowing vehicle insurance basics, you might never know the type of auto insurance that suits you best. In addition, you may never know what various auto insurance terms mean.
Here is an explanation of different terms that are used in the field of auto insurance that you need to know.
1. Liability coverage. It is mandatory for every driver to have liability coverage in the US. It pays for damages that a driver inflicts on other drivers during an accident.
2. Bodily injury liability. Bodily injury liability covers the cost of physical injuries brought about by an accident. It caters for medical bills that are incurred while treating injuries sustained in an accident. Bodily injury liability strictly covers for victims of an accident but not the owner of the car that caused the accident.
3. Comprehensive coverage. It covers the damage caused to all the cars that you own provided there are in a good driving condition. It strictly covers damages that are caused by incidents rather than collisions. Some of the things that are included in the comprehensive coverage include damage caused to the vehicle by fire or floods. Comprehensive coverage covers for different things and it is therefore important to check your policy in order to find out what is covered and what is not covered. It is also imperative to carry a high deductible on this particular coverage in order to lower your premiums.
4. Collision coverage. Pays for the cost of damages caused to the vehicle once it involved in an accident with another vehicle. It can also be applicable where a vehicle is hit by another vehicle. If you own a low-value car, it reasonable to drop this coverage since the cost of insurance might end up being higher than the value of your vehicle.
5. Property damage liability. The liability insurance covers the damages that you cause to other people’s vehicles. Property damage liability doesn’t only cover damage that you cause to other people vehicles, but also covers shrubs, fences and houses.
6. Under-insured and uninsured coverage. Pays for the cost of repairing your vehicle in the event you are hit by a driver who is under-insured or doesn’t have auto insurance at all.
With vehicle insurance explained to you in detail you are now capable of understanding it a lot better.