In this post, You will get the 10 Car Insurance Terms You Should Know, understanding them will help You buy the right policy. When buying a car insurance policy, it is necessary that You understand the terms as they might be quite confusing.
So, it is necessary that You know specific car insurance terms and this article is here to guide You.
10 Car Insurance Terms You Should Know
There are some Car Insurance Terms You Should Know and You can check the list below to get them. The terms include collision coverage, comprehensive coverage and a lot more. So, below You will get to know the detailed explanation.
- Comprehensive Coverage
- Collision Coverage
- Declaration Page
- Full Coverage
- Gap Insurance
- Liability Insurance
- No-fault insurance
- Personal Injury Protection (PIP)
1. Comprehensive Coverage
Comprehensive Coverage pays for damage to your car or truck not caused by a collision with another vehicle. Also, this coverage is worth the price if you drive a new or otherwise valuable car.
2. Collision Coverage
Collision Coverage pays for damage to your car, no matter who is at fault. Collision Coverage is good to buy if You drive a new classic car that is dear to Your heart. Also, it is a mandatory expense if You are financing Your vehicle.
3. Declaration Page
Declaration Page is essentially a summary of Your coverage. Also, this includes the kind of coverage You have, the cost and the limit for each and what vehicle is covered.
The deductible coverage is the amount You pay out of pocket for repairs when making a claim before your insurance kicks in. Now, Your monthly payment will reduce the higher Your deductible.
5. Full Coverage
Full Coverage auto insurance can imply that a policy includes more than liability coverage. However, it does not fully exist. You can consider a policy with comprehensive and collision coverage, and uninsured and underinsured motorist coverage as full coverage.
6. Gap Insurance
In addition, Gap Insurance is worth purchasing for folks leasing or making payments on a car. However, if You own Your car outright, You can leave gap insurance on the table.
7. Liability Insurance
Liability Insurance is the minimum amount of insurance You need to carry. Also, this coverage pays for damages and injuries to the other party in an accident of Your fault. However, this coverage does not pay for any injuries or damages to You or Your vehicle.
8. No-fault Insurance
The No-fault insurance keeps blaming out of the insurance game. Regardless of who is at fault in an accident, the No-fault Insurance coverage will pay injury benefits to the policy owner.
9. Personal Injury Protection (PIP)
Personal Injury Protection (PIP) coverage is required in no-fault states and this means Your condition will determine specific details. Generally, Personal Injury Protection (PIP) will cover medical expenses, funeral costs, lost wages and essential services You may not be able to perform because of injury.
SR-22 coverage is also known as a Certificate of Financial Responsibility (CFR). Also, this coverage is essentially proof of insurance for folks who have had a suspended driver’s license. Also, You will likely need an SR-22 if You have a bad driving record with an injury-causing accident to Your name.
The requirements for this insurance coverage vary by state but generally, You will have to carry an SR-22 for three years.