Are you are looking to get an online car insurance quote, but you’re not exactly sure what everything means. No worries! Here at Royce Williams Agency, we’ve put together a helpful cheat sheet to help you understand each part of your car insurance quote. That way you will be well-equipped to make an informed decision as to which car insurance policy is the best choice for you.
There are some key terms you will need to get to know before you can fully understand the parts to a car insurance quote. Here they are:
A deductible is essentially the amount that is taken from your insurance claims for both collision and comprehensive claims.
There are many choices for deductibles. By choosing a higher deductible, you will receive a lower monthly premium. On the other hand, going with a lower deductible will increase your premium, but allow you to pay less out of pocket in the instance of an accident. What’s best for you will depend on your specific situation.
Your premium is essentially the cost to you for your insurance as a policyholder. You can choose to pay your premium monthly, semi-annually or annually. It’s all up to you. Sometimes you will get a discount depending on the pay schedule you select.
Property Damage Liability
Property damage liability coverage protects you if you damage someone else’s car or property by helping pay for the damages up to a certain amount. When reading coverage shorthand, this is the third number. For example, in 100/300/50, your property damage limits would be $50,000.
Bodily Injury Liability
Bodily injury liability protects you if you kill or hurt someone with your vehicle. The types of items covered in this insurance include: lost income, medical expenses and other damages for which you are responsible. Note that this coverage does not cover you or anyone in your vehicle. This type of coverage is required by every state in the U.S. minus one—New Hampshire.
Collision coverage covers damage to your vehicle that results from a crash with another vehicle or object. This type of coverage is not generally covered by states, but is usually required by lenders when you are buying or selling a car.
It may be unnecessary to purchase collision coverage if you drive an older car, since the actual cash value of the car, the price of the car when it is totalled, may be less than the premium you are paying.
Personal Injury Protection
It covers injuries to you or others in your vehicle. Personal injury protection insurance is only required by no-fault insurance states, but it is recommended to have regardless of where you live. It pays for your medical expenses as well as other accident related expenses—no matter who caused the accident.
This type of coverage covers your vehicle for anything other than an accident with another vehicle. Examples include: vandalism, hail damage, hitting a deer, tornado, etc.
Uninsured Motorist (UM) Coverage
One in seven drivers on the road don’t even own insurance. This makes it highly important that you get uninsured motorist coverage. This type of coverage comes in two forms. The first protects bodily injuries (UMBI) to you or others in your vehicle if the at-fault car doesn’t have insurance. The second covers damage done to your automobile (UMPD).
Now that you understand the terms used on your auto insurance policy you are better prepared to make an informed decision on a policy. To receive a free auto insurance quote from Royce Williams Insurance Agency, simplyclick here and submit the required information. We will get back to you as soon as possible with your personal auto insurance quote.