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Car Insurance Rate Comparisons

When it comes time for you to renew your auto insurance, it'll likely be time for a new round of car insurance rate comparisons. Working online will allow you to do this with great ease as you can have all of the comparisons readily available to you in a fast manner. Going through our website will also allow you to get these quotes absolutely free, so all you have to worry about is the comparison itself.

The best thing to do when going through online car insurance rate comparisons is to stay up to date on what is going on in the world of auto insurance. Cars change, so most policies change accordingly. Often policies get more complex over the years, and companies may begin to offer more options for you to choose from over time. This makes for a lot of new policies to compare and a lot of new terminology to review

Overall, you have to stay educated about basic car insurance terminology to receive accurate quotes and get policies that you can actually use. It is important to know what is being said when you go online looking for information about different policies because confusion will lead to nothing more than a bad decision. Below are a few terms that you may come across when you start comparing rates online.

Car Insurance Terminology

Actual Cash Value: This is what the vehicle is worth now, not when you bought it. If you need to have it repaired, the depreciation of the value will be assessed and labeled as your actual cash value. This is usually the amount that you get back when the car is totaled.

Benefit: The amount of money your insurance company will pay out to you. This money may also be given to a beneficiary if there is a claim filed for the auto insurance.

Bodily Injury Liability: If you are at fault for an accident, the medical expenses of other people in the accident are covered through this policy.

Claim: This is the term used when you, the policy holder, request a 'refund' for your money based on the out of pocket expenses you encountered to repair damage to your vehicle from an accident. You can file a claim with your provider at any time, even if the event happened because of natural causes.

Collision: Quite obviously, this covers damage to the policyholder's vehicle from an accident involving a collision. The collision could involve another car, parking curb, a light post, garage wall, etc. As long as you hit something, this policy will cover it.

Comprehensive: This is used for damage to your car that does not involve hitting another car. It covers the damage resulting from fire, falling objects, theft, missiles, explosion, flood, earthquake, riot and civil commotion. Comprehensive can be highly beneficial in crime-ridden neighborhoods where people are more likely to vandalize your property.

Deductible: This is the part of the accident costs that you are going to be responsible for. If you go with a higher premium, then your deductible will be significantly lower. In turn, lower premiums will lead to higher deductibles. It is best to have money allotted for your deductible no matter how high or low it is so that you can get your car fixed after an accident.

Endorsements: This is what they call any form of changes in your premium. If you upgrade to a different plan, the adjustment is referred to as an endorsement.

Exclusions: Obviously, this is anything that is excluded from your policy. Your exclusions will not be covered in the case of an accident, fire, etc. It is important to clarify what exclusions you may encounter when looking for car insurance rate comparisons as you will be responsible for anything that falls under that category. 

Full Coverage: This is very self explanatory. Full coverage literally covers your vehicle in full whenever you are involved in an accident. This is required for vehicles that have a lien on them because lenders want to make sure that you are covered in the event of a serious accident. Once you are the owner of a vehicle, you can drop down to a lower coverage that may be more affordable than full coverage. 

Income Loss Coverage: This is sometimes a part of Personal Injury Protection, and it helps cover the amount of money you may loose by not being able to work after an accident. This is most beneficial for people who work frequently and maintain a tight budget from week to week.

Indemnity: This is a preset amount of money that used when you need funds for a short amount of time due to job loss.

Limits: This is the maximum amount of money your car insurance company will pay out for your losses in an accident. Check to see what the minimum and requirements are in your state as they do vary throughout the country. Your limits are important to note if you are moving as they could be adjusted in a new state.

Medical Payments or Personal Injury Protection (PIP): This will take care of the medical needs of the policy holder (driver) and any passengers of the policyholder involved in an accident. In its most extensive form, PIP can cover lost wages on top of medical expenses for people injured in an accident. Coverage may also extend to the policyholder if he or she is injured in someone else's vehicle. Potential coverage for when the policyholder is on foot may also be available. 

No-Fault Insurance: This covers situations where a person is involved in but not the cause of an accident and the other party involved does not have valid car insurance. This can also be paired with Uninsured/Underinsured Insurance, and often the two are used interchangeably. No-fault insurance can sometimes provide adequate coverage for hit and runs as well.

SR-22: A document that verifies that a person is financially responsible for a traffic violation.

Tort: This describes circumstances when someone is found liable for another person's physical harm or damage to their property. Not all states abide by a tort system, but most do. Some states suggest that you make a tort provision as it will reduce the cost of your premium by limiting your legal rights. It is best to find out what your state requires so that you know if a tort is an option for you.

Uninsured/Underinsured Motorist Coverage: This can be used in an accident where the at fault driver does not have adequate coverage for the damages. The person could either have no insurance at all or have limited liability that isn't fitting for the scale of the accident.

These are just a few of the terms you may encounter during your car insurance rate comparisons. Delving into specific policies may uncover other terms as well. Education is the best way to ensure that you are getting the right coverage, and comparison shopping allows you to get it at the right price. Do yourself a favor and find out what your state requires in auto insurance, and then look for quotes that abide by those requirements. Finding a good auto insurance quote online could be as simple as learning definitions as long as you know how to use them right


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