Buying and understanding auto insurance is an important part of every driver’s life. Knowing the terms associated with auto insurance can help you make sure you get the coverage you need. Here are some terms to know:
Uninsured Motorist Coverage
Uninsured motorist coverage is a type of auto insurance coverage that pays for the medical costs of an accident if the responsible driver does not have insurance.
Collision coverage helps you pay for physical repairs to your car if it’s damaged in an accident.
Comprehensive coverage pays for damages to your car from non-accident related events, such as theft, fire, or vandalism.
Liability coverage helps pay for the costs associated with damage or injury an insured driver causes to someone else’s car or property.
Medical Payments Coverage
Medical payments coverage is auto insurance coverage that pays for the medical costs of an accident, regardless of who is found to be at fault.
A deductible is the amount of money a driver must pay out of pocket before the insurance company pays the rest of a claim.
No-fault insurance is a type of auto insurance coverage where insured drivers are compensated for their medical and other losses, regardless of who caused the accident.
Gap insurance is a type of auto insurance that pays the difference between the amount owed on a car loan and the actual value of the car.
Roadside assistance is a type of insurance coverage that pays for services such as towing, flat tire changes, or jump starts for when a car breaks down.
Tips for Buying Auto Insurance
- Understand the coverage types you need.
- Shop around to find the best rates.
- Don’t sacrifice coverage for a lower premium.
- Read the policy fine print before signing.
- Check the ratings of your desired insurer.
Auto insurance is an important part of every driver’s life, so it’s essential to understand the terms associated with it. With these terms in mind, you can be sure you get the coverage you need.