Car Insurance Policy Terms

When you’re looking to purchase car insurance there’s a lot of different car insurance policy terms that you might not be aware of. Many of the different policy options are mandatory all others are simply optional and it’s important to know what all of the terms mean so you can make informed decisions. They don’t know what the different policy terms mean it can be very confusing undertaking.

Collision Insurance:  This is the part of your insurance that allows damages to your car to be paid for when there is an accident. This means that you are covered for damages if a car hits you, if you hit another car, or if you run into anything else. You are also covered if your car rolls over provided that it didn’t occur during a stunt or race.

Comprehensive Insurance: This is there to cover damages that occur from things not covered by collision insurance. This means that in the event of a flood or fire you will be covered. It also covers damages incurred by vandalism, theft, and any damage done by falling objects. It is a good idea to carry collision if you have a newer car. If your car is older, then you can safely go without it.

Medical Insurance: This will cover any medical bills for injuries that occurred to you or to your passengers when you are driving. Anyone that you allow to drive your car will also be covered. You and your passengers will also be covered if you are driving someone else’s car. There is also a payment given out to cover funerals if a death occurs during an accident.

Bodily Injury Liability Insurance: This is in case you cause an injury or death from an accident. It will cover the cost; however, there are many exceptions. You should make sure you research and understand what is covered and what is not for your insurance company.

Property Damage Liability Insurance: This will cover the cost of any property damaged. Your property is covered whether you are driving or if anyone that has your permission is driving.

Uninsured Motorist Coverage: This is for that person that didn’t bother to get their own insurance. There are an estimated twenty five percent of drivers in each state that are driving without any insurance coverage at all. With this you will be covered if the other driver in an accident doesn’t have coverage. It will also cover any damages if there is a hit and run accident. This is a great coverage to have, unfortunately it is not offered in every state.

You have many options when it comes to your car insurance policy. You can add coverage in your policy to cover practically anything that can happen to your vehicle. Of course this could be costly and most people can’t afford this luxury. Instead you should choose the best options for you and your budget.