Understanding Car Insurance before You Shop

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Most people receive their car insurance policies in the mail, rip out the insurance identification cards, throw the policy itself in a pile, and never think about it again. Why? Because car insurance terminology is confusing and most people believe that unless you’re in the business, or a lawyer, it’s almost impossible to understand that mess of paperwork. Nothing could be further from the truth.

In reality, in order to obtain a free instant car insurance quote or buy cheap insurance coverage you’ll need to know exactly what you’re dealing with. This means learning a few basic insurance terms so that you can make sure you’re getting the same coverage from every company offering a quote.

Basic Automobile Insurance Terminology

There are three main types of coverage included in the standard automobile insurance policy. These are liability, medical payments, and damage to your own vehicle. When you start searching for free instant car insurance quotes you’ll be asked what limits of coverage you want in each area so you should familiarize yourself with what each term means.

Liability insurance coverage is a coverage you must have in case you cause an accident. Liability coverage is usually split into two parts. Bodily injury coverage pays for medical bills the other party incurs due to your negligence. Property damage pays for the damages to the other person’s vehicle caused by your negligence. Every state has a minimum level of required liability coverage and those looking to buy cheap insurance, despite the recommendations of most agents, do not increase those limits.

Coverage for medical payments, in some states, is referred to as Personal Injury Protection (PIP). Some states require your automobile insurance company to pay your medical bills regardless of who is found to be at fault for the accident. Other states allow you to immediately sue the other party for medical coverage. When you fill out you’re the form to request a free instant car insurance quote you will be asked to choose what limit of coverage you want for your own medical expenses. Keep your state’s laws regarding medical payments by health insurance companies in mind when choosing this limit.

Coverage for damages to your own vehicle, caused by your own negligence, is enveloped under coverage options known as comprehensive and collision. Collision coverage will pay for damages to your vehicle caused by just that – a collision. Comprehensive coverage will pay for damages to your vehicle caused by fire, theft, vandalism, and other incidents categorized as “acts of God” (including hitting a deer, which is not considered a collision in most states). If you’re looking to buy cheap insurance you may not opt to take these coverages but if you have a new vehicle you may be required to purchase them.
There are other, optional coverages, like towing and labor or rental reimbursement, but not all carriers offer these and they do not all offer the same limits. When choosing the coverage options for your free instant car insurance quote, make sure you keep these options as similar as possible so that your quotes remain comparable.

We, at Car Insurance Hub, are here to help you obtain free instant car insurance quotes from the best carriers in the country but just a little understanding can go a long way in ensuring you get exactly what you need!

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