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Terms You Should Know in Car Insurance Comparison


People browse different websites to get as many auto quotes for comparison. They go through the tedious process of collecting and selecting just to get the best value of insurance policy that their money could afford them. This process is often called car insurance comparison. It is an important step in which motorists read to understand the policy they are trying to get.

Basically, they check the rates given them as against the features of the policy. Of course they are trying to look for the cheapest rates possible while still being able to enjoy comprehensive features. Car insurance comparison is not an easy task but it is important to learn how to do it since you will be getting insurance policies at least once a year. Many state laws require motorists to insure their cars before registration.

Car insurance comparison is a matter of personal discretion because what is cheap for one person may not be so for another. You do not merely look at the premium rate because you also have to match that against the features offered to you for a certain price. Before learning how to read wisely an auto quote, you should first be aware of the usual terms you will usually encounter. Here are some of them.

Comprehensive Coverage

A car with comprehensive coverage insurance will be fully covered from any kind of accident, be it a result of vehicular collision or a calamity. It will not matter who was at fault in the situation.

Bodily Injury and Liability

You will often see this in an insurance policy. If you have this type of coverage, it means that the insurer will shoulder the medical expenses of an injured person in case of a vehicular accident. Take note of two important figures under this type of coverage. First is the maximum amount the insurer will pay every person involved in the accident. Second is the total amount the insurer will pay for all those involved in the accident.

Collision Coverage

An insurance company will shoulder repair or replacement cost of a vehicle in case of car collision or car crash against a fixed object.

Liability Coverage

You will be held liable for any damage you cause to another car. If you have liability coverage insurance, your insurer will take care of the expenses for you.

You will encounter many more terms while you are in the car insurance comparison stage. Do not hesitate to ask or clarify what is written if you do not fully understand it. Think of it as learning something new. It is crucial to making an informed choice before buying.