If you own a car, you need auto insurance - no matter where you live or how much you drive. Luckily, it's easier than ever to compare prices and to buy auto insurance online. Still, it's important to be an informed and conscientious consumer. In order to get an accurate online car insurance comparison from a variety of companies, you need to know what the different types of coverage mean, and what will be suit your needs and lifestyle. Here, then, are some common types of coverage and terminology you need to know when shopping for car insurance.
Uninsured Motorist: Uninsured motorist coverage protects you should you be in an accident with another driver who is either uninsured or underinsured. This is an important type of coverage to buy, since the insurance industry estimates that one in seven drivers is uninsured.
Comprehensive Coverage: Comprehensive coverage takes care of things that might happen to your car other than a crash, such as your car catching on fire, someone stealing your car, or someone smashing a window.
Property Damage: If you hit a house, another car, or some other kind of property, property damage insurance will cover your liability. This type of coverage is often mandated by state law.
Collision Coverage: Collision coverage protects your vehicle should something happen to it while it's moving, regardless of who is at fault. If your car is financed or leased, the lender or owner of the vehicle usually requires this type of insurance.
Medical Payments: Coverage for medical payments applies to you, as well as your passengers, regardless of who was at fault. It can cover medical treatment, ambulance transportation, and possibly even funeral costs.
Bodily Injury Liability: This type of coverage is often mandated by state law, and pays for the harm your vehicle does to a person.
Premium: The premium is the amount you pay for your insurance, and consist of the quotes you receive when you do an online care insurance comparison.
Deductible: This is the amount of money that you must pay before your car insurance "kicks in." For example, if you have a $250 deductible for collision coverage, you must pay the first $250 of the repair bill, and the insurance company will pay the rest.
Good Driver Discount: If the drivers covered by your insurance policy have good driving records, have been driving for a certain period of time, and have not been at fault in an accident causing bodily injury, you may be eligible for a good driver discount that will lower your car insurance premium.
Grace Period: A length of time (usually about a month) after your premium is due, during which time your insurance will remain in effect. After the grace period, your insurance policy may be cancelled.
When shopping for auto insurance online or over the phone, it's important to understand the different types of coverage that companies offer, as well as other terms that are often used by the insurance industry. When you do, you can obtain the kind of coverage you need at the best prices available.
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Chris Robertson is a published author of Majon
International. All Rights Reserved. Copyright 2009 (Sun Jan 06 2008)
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