In today’s world, car insurance is an essential part of any driver’s protection. Fortunately, it’s not as difficult to understand as you may think. In this article, we will take a look at some of the most common terms and explain what they mean. From collision damage to theft, you’re sure to learn something new in this Car Insurance 101 primer.
Collision Damage Waiver
When you buy car insurance, you’re typically offered a Collision Damage Waiver (CDW). This is coverage that pays for damage to your car caused by another vehicle. The CDW usually covers the cost of repairing or replacing your car. You may also be able to receive money for lost wages if you can’t work because of the accident.
There are a few things to keep in mind when buying a CDW:
-The coverage limits how much money you can receive.
-You need to have the original sales receipt for the CDW policy in order to file a claim.
-The policy must be in effect when the accident happens.
Comprehensive Coverage
When you’re shopping for car insurance, be sure to know the terms you need to know. These include liability, collision, comprehensive and roadside assistance.
Liability covers how much money you would be responsible for if someone was injured as a result of your negligence. Collision coverage pays for damage done to another party’s vehicle in a crash. Comprehensive covers personal injury, property damage and loss of use of your vehicle due to an accident. Roadside assistance includes towing and repair services if your car breaks down while you’re on the road.
Personal Injury Protection
If you’re in a car accident, your liability insurance will cover the cost of damages to the other driver’s vehicle, as well as medical expenses and lost wages. In order to be fully protected, you’ll need comprehensive or collision coverage. Comprehensive coverage includes damage to your own vehicle, as well as third party property. Collision coverage pays for damages to the other person’s vehicle and any injuries you cause them.
To find out if you’re covered, call your insurer and ask about personal injury protection (PIP) coverage. PIP provides financial assistance to accident victims who have limited income and no other insurance. If you’re injured in an accident and don’t have PIP, you may be able to receive benefits from either your own policy or the policy of the person who was at fault.
It’s important to know the terms of your policy so that you can make sure you’re fully protected in case of an accident. And remember: always drive safely!
Uninsured/Underinsured Motorist Coverage
If you’re in an accident with an uninsured or underinsured motorist, your car insurance policy may not cover the damages. This is because your coverage is based on the amount of money your car insurance policy pays out in claims, not the actual value of the damage done to other cars. This can result in a big financial loss if you’re hit by an uninsured or underinsured driver. To protect yourself, make sure to read your car insurance policy carefully and verify that it includes adequate uninsured/underinsured motorist coverage.
Vehicle Rentals
When renting a car, it’s important to be aware of the terms associated with your insurance policy. Not all rental companies include the same coverages, so be sure to ask about what is included in your policy before getting behind the wheel. Here are some of the most important terms to know:
Collision: This coverage pays for damage done to your rental car as a result of an accident. It includes things like repair costs and replacement costs.
This coverage pays for damage done to your rental car as a result of an accident. It includes things like repair costs and replacement costs. Comprehensive: This coverage protects you from almost everything that can go wrong with your car, including theft, hit-and-run accidents, and vandalism.
This coverage protects you from almost everything that can go wrong with your car, including theft, hit-and-run accidents, and vandalism. Indemnity: This type of insurance covers you if someone else is at fault in an accident while you’re driving the rental vehicle.
This type of insurance covers you if someone else is at fault in an accident while you’re driving the rental vehicle. Loss or damage: This covers lost income due to missed work or other expenses related to a collision, Comprehensive or Indemnity coverages.
Liability Insurance
When it comes to car insurance, there are a few terms you need to know. Liability insurance covers you financially if someone is injured or damages your car in an accident. This type of insurance can be important if you have young children or are in the rental car business. Collision coverage covers damage to your car that occurs as a result of another vehicle crashing into it. If you’re involved in an accident and don’t have collision coverage, the other driver’s insurance may cover the damage to your car. Underinsured motorist coverage helps protect you if the at-fault driver doesn’t have enough money to cover the cost of your repair or replacement. This type of insurance can help pay for things like damage to your car or injuries you sustain in an accident.
Homeowners Insurance
The frequency of accidents and the severity of injuries can affect how much you pay for car insurance.
Your state may have its own minimum liability requirements, which are typically much higher than the Federal government’s minimum requirement. You also need to be aware of your unique driving history – if you’ve had a lot of accidents or tickets, your rates will be higher than if you’ve had few accidents or tickets.
Finally, your credit score affects your car insurance rates. A high credit score means you’re a low-risk driver, so insurers tend to charge lower rates to drivers with good credit scores.
Renters Insurance
When you rent a car, you’re taking on additional risks and should be aware of the types of car insurance that are available. Here are a few things to consider when renting a car:
In general, renters insurance is usually not mandatory in most states, but it’s still something to weigh against the cost of rental. In some cases, your credit score may affect the price of your policy.
Since cars can be used for both personal and business purposes, renters insurance typically covers losses or damages to the rental car as well as injuries or losses caused by someone else in the vehicle. Coverage may include damage done by thieves, animals, and natural disasters like floods or earthquakes.
Renters insurance usually has minimum coverage amounts and often includes per-day rates so that you can adjust the amount of coverage as needed. Some policies also have excess liability coverage which means that if you are sued and found liable for more money than your policy covers, the insurer will pay up.
Some basic terms to know about renters insurance:
Damage Waiver: This type of coverage pays for damage done to the rental property (or any other property owned by the insurer) without requiring that you take any legal action. This protection can come in handy if there is damage while you’re out of town and unable to fix it before returning home. Collision Damage Waiver: Covers damage done to your rental car from a collision with another object, including roadside debris
Credit Card Coverage
When you get a new credit card, be sure to read the terms and conditions. Some cards have increased coverage for accident costs, while others may not cover all types of accidents. Be sure to ask your issuer about specific coverage before signing up for the card.
In general, most credit cards offer some form of liability insurance, which will pay for injuries or damages that you cause in an accident. This insurance usually kicks in after your deductible has been met. Note that this coverage is limited to personal injury claims and does not include property damage.
Some credit cards also offer collision coverage, which pays for damages to your car that are caused by another car. This Coverage usually covers both the cost of repairs and any loss of income caused by the accident. Make sure you understand what is covered before signing up for this type of coverage.
Finally, some cards offer theft coverage, which will pay for lost income if your car is stolen while you’re not using it. Make sure you check the fine print to make sure this coverage includes all expenses associated with replacing your car (such as rental cars).
Be sure to read the terms and conditions when applying for a new credit card so you know what kind of protection is available to you in case of an accident.
Conclusion
car insurance can be a confusing topic, which is why we’ve put together this list of 10 terms you need to know when getting car insurance. From collision coverage to liability limits, read on and learn everything you need to know about car insurance before buying your policy. And if you have any questions after reading this article, don’t hesitate to reach out to our team at our contact page or call us at 1-866-222-1222. We would be happy to help!
