10 Car Insurance Terms You Must Know
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.