Understanding auto insurance can be quite difficult and this makes choosing the right company for you even more difficult. Car insurance is mandatory in most countries, so there’s no way you can go around it and avoiding it. But before you choose the type of insurance and the company it’s good to understand how auto insurance works and how it will protect you and your car. We’ve done some research and came up with some basic car insurance terms that you need to know before embarking on the challenging task of choosing a company. So if you want to know what a quote or what a deductible are, read on and get informed.
Insurance Quotes
An insurance quote is simply an estimate of the coverage costs and options. So before you choose an insurance company, be sure to get the insurance quotes from various companies available in your state or country. You want to choose the best option for you!
There are three main types of auto insurance coverage: liability, collision and uninsured driver coverage. Liability coverage covers any damage caused by you to another car (a body liability coverage could be added so that the company pays for the medical bills of those hurt in the accident), the collision coverage pays for any accident that was not your fault and the uninsured driver coverage will cover the costs of an accident caused by an uninsured driver.
Deductible
Insurance deductibles are a tricky thing. If it’s the first time you’re hearing about them, you’ll be a little appalled. So what is a deductible? It refers to the amount of money the insured individual has to pay before the insurance company begins paying for the losses. Bottom line, you get into an accident for the first time and the first payment has to be made by you and only after that your company will start paying. There are countries where deductibles don’t have to be paid, so look into that and see where the case for you might be.
Fault Claim
A fault claim is when you are considered responsible for an accident or loss. In this case your insurance company cannot recuperate the money – for example if you leave your car in a parking lot and when you return you’ve noticed that is was hit and the guilty party cannot be traced, this is a fault claim.
Now that you’re clear about some basic terms of auto insurance, you can reflect on the matter and make an educated choice. If you still need some help, you should try doing an auto insurance comparison and learn more about the subject.