You have a vehicle and are ready to start protecting it with a high-quality insurance plan. Your goal is to have great coverage at a reasonable price. However, if you’re unaware of the key terms associated with taking out a new plan, you’ll likely be spending too much on the insurance that you need. The most important auto insurance terms to know will help when choosing a policy that works for you and your family. You’ll be saving money while still obtaining superb protection.
Collision coverage only applies to your vehicle and helps to fund repairs that may accrue after hitting another vehicle, a building or during a rollover. This type of insurance is essential regardless of the type of vehicle you’re driving, and it’s one of the basic options that you should consider when purchasing a plan. If you do not have this add-on to your policy, you’ll be shelling out all of the money necessary to make those repairs.
Comprehensive coverage is a bit more specific to the type of damage that has been done to your vehicle. Some examples would include hail damage, a limb falling down and damaging the car or hitting an animal. This type of protection also covers you when it comes to theft of the vehicle itself or instances of fire, so it’s an especially important add-on if you live in the city where these issues are more prevalent.
Bodily Injury Liability Insurance
If you accidentally hit someone while driving, you could be in some hot water unless you have BI, or bodily injury insurance. This specific type of option pays a large sum of money to the person who was injured after being hit, and it can prevent a major lawsuit coming against you if this happens. It can be downright frightening if you happen to hit someone while driving, but the repercussions that come with it are even worse and can be prevented if you have this add-on within your plan.
Uninsured and Underinsured Motorist Coverage
This coverage is a great addition to your plan because it protects you in the event of a hit-and-run or if you happen to be involved in an accident where the other driver is at fault and doesn’t have enough or any insurance at all. Safeguarding yourself and your loved ones is so important, and you never know if someone has enough protection to pay for all of the costs and injuries that have developed as a result of the accident.
Most policies have a deductible along with the rate or monthly premium that you’ll pay to maintain your account. The deductible should be as low as possible, since this is the amount you’re responsible to pay before your insurance coverage kicks in. For example, if you have comprehensive on your current plan and have a windshield crack that’ll cost a small amount to fix, but you have a high deductible, you’ll be responsible for paying for those windshield repairs yourself because you didn’t meet the deductible. Most deductibles include an entire year’s worth of damages and costs.