Knowing the lingo means everything when shopping around for car insurance. If you don’t have a firm grasp on what certain terms mean, it can be challenging to make a good decision. Some important terms to know when it comes to car insurance include deductibles, premiums, collision coverage, comprehensive coverage and liability coverage.
Deductible – Your deductible is the amount of money you have to pay for damages out of pocket before the insurance company will cover expenses.
Premium – This is the amount of money you have to pay each month to maintain your insurance.
Collision Coverage – Your insurance company will cover your car if it is destroyed or damaged in an accident.
Comprehensive Coverage – Your car is covered for things like fire, flood or hail.
Liability Coverage – Covers the damage if you are found at fault in an accident.