Introduction: Terms, Coverage, Car Insurance Quotes

A huge part of the quest for great car insurance is learning. If you grasp the basics, you will be able to find a policy that better meets your needs and one that costs you less money. Use this page to get started shopping with confidence using car insurance quotes.

Basic Concepts

Coverage – The defined conditions under which an insurer will pay for certain damages and injuries. Depending on the coverage, it could pay for your vehicle's damage, injuries to people in your car, or damages to another party. There is a maximum amount of money that is to be paid by the insurer.

Deductible – When you file a claim, you will be required to pay a part of it on your own, as is defined in your insurance agreement. This money is the deductible.

Policy – The details of the agreement between you and the insurer. This includes the coverage, deductible, and money to be paid.

Premium – The regular payment you make to the car insurance company. This keeps your policy active. Billing periods are typically yearly or twice a year, though monthly policies are available.

No-Fault Insurance – Some states do not have the normal tort system. Instead, each driver is required to pay for their own injuries with insurance.

Coverage Types

Liability – Pays for damages, injuries, and death to others for which your vehicle is responsible. Liability coverage also provides for your legal defense if you are sued.

Personal Injury Protection – This is the basic coverage in No-fault States. It covers at least medical expenses to the insured, regardless of fault.

Collision – Pays for the insured vehicle's damages when they are caused by driving incidents. Fault does not matter.

Comprehensive – Pays for the insured vehicle's damages resulting from several types of non-driving scenarios, including weather damage, natural disasters, hit-and-runs, arson, theft, wildlife damage, war, riots, and more.

Medical Payments – Provides financial assistance for any necessary medical treatment for drivers and passengers of the insured vehicle resulting from crashes. A maximum level of coverage total and per person in the collision is set. Funeral costs, if unfortunately needed, are also covered.

Uninsured/Underinsured Motorist – Since nearly half the drivers on the road in the US have either no insurance or not enough to cover their responsibilities, these coverages are ways to protect yourself. When you need compensation for damages and injuries and the other driver cannot pay, this coverage will.