Getting to Know Your Car Insurance
A lot of the terms used by car insurance companies are beyond the understanding of the average person and reading a car insurance policy can be a difficult thing to do. Some terms are fairly easy to understand though and we will take a look at some of the easier ones below.
Collision Coverage Policy
The first is collision coverage policy. This simply means an insurance policy that covers your car in the event of a collision. It would cover the damage to your car, the car you collided with, and to some extent property damaged as a result of the accident. You can purchase various amounts of collision insurance. A minimum amount is usually required by state law and the maximum would depend upon the value of your car and your particular financial situation.
Comprehensive Coverage Policy
The second term is comprehensive coverage policy. It is the most used policy because it covers a lot of risks. These risks include the damage that can occur due to any calamity, disaster, theft, third party damage, accidents and so on. The comprehensive coverage is recommended for most people. It will cover you for theft or accidents and includes payment for the third party as well. If by chance you have an accident and have damaged the car of the other person as well, then the best suited policy is the comprehensive policy as it will cover all the damages which have occurred.
Bodily Injury Policy
The third term is bodily injury policy. It means that if someone gets injured during the accident it will be covered under this policy. Bodily injury coverage is generally for the insured, passengers and the third party involved.
Property Injury Policy
The fourth car insurance term is property injury policy. This means that during the course of the accident if you have damaged the property of someone then the insurance company will be liable to pay for the damage that has been done.
The above terms are very basic and common when it comes to car insurance. When buying your policy, you will want to ensure that you have collision coverage for protection in case you are ever in a car accident. You will also want bodily injury so you will have protection if you are injured in an accident. Comprehensive coverage is also important so you will have protection in the event that your car is stolen or damaged in some other way besides an accident. If you are unsure of what all the car insurance terms mean, the best thing for you to do is schedule an appointment with your car insurance agent so you can sit down and talk about your policy and the type of coverage that you have.
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