3 of the Most Misunderstood Car Insurance Terms
When it comes to choosing a car insurance policy for your vehicle, it’s a process that involves more than just signing your name on the dotted line. You should know what your policy will and will not cover, whether or not it meets your state minimum requirements, and if you need certain types of coverage that are not required by the laws in your state.
Sometimes there can be a range of terms and phrases that aren’t very clear, and here are a few of the most misunderstood car insurance terms you’ll encounter:
- Deductibles: The deductible on your car insurance policy is the amount you will have to pay, out of your own pocket, for each claim you submit to the insurance company before they will pay any other balances owed. Lower deductibles typically mean higher premiums, and vice versa.
- Comprehensive: While the word “comprehensive” usually defines a broad range of something in particular, this isn’t quite so with car insurance. Comprehensive car insurance generally covers accidental damage to your vehicle that is not related to a collision with another car or stationary property (i.e., a building).
- Property Damage Liability: This type of insurance provides coverage and protection in the event that you are involved in a collision with another vehicle or stationary property.
To learn more about what different types of protection and coverage terms in car insurance policies mean, contact an agent at Schumacher Insurance Group today. We can help you with the details and work with you to select a policy that best fits your needs.