The Ins and Outs of Auto Insurance

 Important Auto Insurance Terms You Should Know

Bodily injury liability, collision, comprehensive, and property injury liability. Do you know what these terms mean? If you are currently paying for any type of auto insurance, then these are terms you should know to ensure you are getting the right coverage at the right price.

Bodily Injury Liability

If you were at fault in an accident and others involved needed to go to the hospital or lost wages from missing work, those costs would come out of your pocket if you are not insured with bodily injury liability. After an accident, these costs can quickly add up. Many states require you to carry this type of coverage. Having this coverage can also protect you in case legal action is taken against you following an accident.

Collision Coverage

In the event you need repairs or replacements following an accident, you’ll benefit from this coverage. The higher the deductible you elect, the lower your premiums will be. Should you get into an accident in which you are at fault, how much would you be able to afford to pay out of pocket for repairs? Don’t forget to check if this coverage is available in your plan!

Comprehensive Coverage

This is the coverage that pays for damage caused from falling objects, fire, certain natural disasters, theft, and vandalism. If you live in an area where natural disasters — such as hurricanes, tornadoes, and floods — are common, you may want to consider getting this type of coverage. Also, if you live in an area where auto theft is high, especially for the type of vehicle you drive, you’ll also want to look into possibly getting comprehensive coverage.

Property Injury Liability

The damage to a vehicle from a car accident can easily add up into the thousands of dollars. You wouldn’t want to be caught without property damage insurance should you need to pay for repairs to another vehicle, building, or anything else you might hit. As they say, you can never be too sure what you may run into while driving!

Summing It All Up

With these different types of coverage, you’ll quickly discover that the peace of mind offered by them is worth more than what you’re paying — it’s priceless. For example, imagine if you crash into the rear-end of another vehicle. Your liability coverage will kick in and pay for the damages that you caused with your vehicle. Imagine having to pay those costs out of pocket! This possibility can make even the best drivers paranoid if lacking the coverage.

It’s important that you understand what you are paying for and why it is necessary. By knowing these technical terms, you will be able to make a more informed decision about your car insurance plan and attain the peace of mind that you deserve.