Getting your car insured is a must. Not only are you legally obligated to get insurance but it also provides you coverage against risks while on the road. There are different terminologies used in the world of insurance and you need to be aware of it. The must know car insurance terms and their meanings are explained herein.

Comprehensive Coverage
One of the must know car insurance terms is comprehensive coverage. This is insurance coverage that provides complete protection for your car. It includes many other issues that can cause damages to your car other than accidents.

Collision with an animal, car catching fire, vandals breaking your car windshield, car damage due to riots, accidental damage caused during an earthquake, loss suffered due to theft are all examples of coverage when you buy a comprehensive policy.

Liability Insurance
Liability insurance covers your liability in the case of an accident where a third person is injured or their property is damaged. This is a legal requirement in many states and you must have liability insurance. This insurance covers only liability towards others and does not cover damages to your vehicle or injuries that you suffer.

Collision Coverage
This is a form of insurance coverage that covers any damage caused to your car due to an accident.

Full Coverage
This is a total coverage for your car and includes collision coverage, liability coverage, as well as comprehensive coverage. While the premium for full coverage is expensive, it ensures peace of mind as you know that any eventuality would be covered by your insurance.

Limit
The maximum amount payable by the insurer in case of an accident is called the limit. This is an important number that you should be aware of.

Personal Injury Protection
This is a type of coverage that ensures any personal injuries sustained by you and the passengers in your car are taken care of. The payment is made irrespective of who is responsible for the accident. Even loss of income and therapy costs can be covered.

Exclusion
This is the term for damages your car insurance policy will not cover. For example, deliberate damage to the car is excluded, meaning claims in this regard will not be entertained.

Premium
This is the amount you pay to get your car insured. The amount charged depends on factors like your location, age, and vehicle details. You can pay the premium in instalments or as a lump sum amount.

Deductible
The insurer would deduct this amount from your settlement. This is a fixed amount mentioned in your policy. The more the deductible you opt to pay, the lower will be your premium.

Uninsured Motor Coverage
This coverage takes care of damages and medical expenses in case your cat is hit by a car whose driver is uninsured.

The 10 must-know car insurance terms listed herein with their meanings will help you understand all about car insurance. You will see these terms in your policy and it is required to know all about them.