Car Insurance Coverage Terms

As anyone who has purchased any type of car insurance knows, there are a lot of terms used for the different types of insurance and options you can buy.

I wanted to outline the most common terms and options that you can buy when purchasing car insurance.

I am not a lawyer, nor am I a car insurance broker. This article is merely meant as an outline, so be sure to discuss your options with your insurance specialist before making any purchasing decisions.

Car Insurance Terms:

Bodily Injury Liability Insurance: This is what protects you if you cause bodily harm to someone in an accident. You can buy only the basic coverage of this type of insurance, but I usually lean towards beefing it up a bit. Nowadays medical bills can get very expensive and you don’t want to be left holding the bill.

Liability Insurance: Similar to above, but this one covers any damage you do to someone’s property. This can include their car, their house, garage etc.

Collision Coverage: This coverage comes into play when the accident is your fault. For example, if you were to slide off the road and into a tree or a ditch, the damage to your car would only be covered if you had collision insurance.

Comprehensive Insurance: Also known as fire and theft, this insurance will cover you for anything like weather, vandalism, theft etc.

Car Rental Option: Many insurance companies will cover your car rental expenses if you should find yourself in an accident and your car needs repair. This is completely optional and does not effect your liability in an accident.

Full Glass Coverage: This insurance option will negate your deductible on all of your car’s windows instead of just your windshield. It’s a good idea to shop around if you’re interested in full glass insurance coverage because some insurance companies will offer this type of deal for free.

Medical Coverage: This coverage will cover any medical expenses you may incur if you are in an accident.

Personal Injury Protection: Personal injury protection (PIP) will cover you for work loss or rehab at the result of an accident. This insurance will cover you no matter who is at fault, but is not available in all states.

Roadside Assistance: Most insurance brokers will offer some type of roadside assistance coverage. This coverage gets you a tow truck or a jump start if you need it.

Under-insured Motorist Protection: There are a ton of people out there who simply do not insure their cars… and it really sucks to get in an accident with them. This insurance will cover you if you get into an accident and the other driver’s insurance can’t pay for your expenses, or they don’t have any insurance at all.

Those are the basic auto insurance terms and options. Feel free to add any in the comments below, or let us know any stories you’ve had about car insurance.

Looking to shop around? You can get a free online quote now at Car Insurance Reduction.

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