Auto Insurance 101: 10 Auto Insurance Terms You Need To Know

Auto insurance is extremely important during the summer season for a variety of reasons. First and foremost, the summer months are typically when most people are out on the roads more frequently due to vacations and other travel. This means that there are more opportunities for accidents to occur. There are so many ins and outs to auto insurance that you could end up needing a dictionary to define all of them for you. In this blog, we’re going to cover the most important auto insurance terms you’ll need to know this summer season.

Additionally, the warm weather can lead to more car problems, such as flats and dead batteries, which can also result in accidents. Make sure you are prepared for anything by having comprehensive auto insurance coverage this summer.

10 Auto Insurance Terms You Need To Know

When it comes to auto insurance, there are a lot of terms that can be confusing for consumers. Here is a quick rundown of some of the most common auto insurance terms to help you better understand your policy:

Term #1: Collision Coverage

There are a few different types of car insurance, and collision coverage is one of them. This type of insurance covers damage to your car that occurs as a result of a collision with another vehicle or object. If you have this type of coverage, it will pay for repairs to your car up to the limit of your policy, regardless of who is at fault for the accident.

Term #2: Comprehensive Coverage

Comprehensive coverage auto insurance is one of the most important types of insurance you can buy for your car. This coverage protects you from financial loss if your car is stolen or damaged in an accident. It also covers you if your car is vandalized or damaged by weather.

Term #3: Gap Insurance

Gap insurance is an auto insurance policy that pays the difference between the amount owed on a vehicle and the actual cash value of the vehicle in the event of a total loss. It is an optional insurance coverage that is typically purchased when a vehicle is financed.

Term #4: Deductible

Auto insurance deductibles are the amount of money you are required to pay out-of-pocket before your insurance company starts to pay for a covered claim. You may choose your own deductible amount, but keep in mind that a lower deductible means a higher premium and vice versa.

Term #5: Declarations Page

An auto insurance declarations page is a document that outlines your auto insurance policy. It includes your name, policy number, and effective dates, as well as the coverages, limits, and deductibles for your policy. The declarations page is typically the first page of your auto insurance policy and is important to keep in your glove box in case you’re ever in an accident.

Term #6: Full Coverage

Full coverage auto insurance is one of the most important types of insurance you can buy for your car. It protects you from financial loss if your car is stolen or damaged in an accident. It also covers you if you are sued for damages caused by your car. Full coverage auto insurance is not required in all states, but it is a good idea to have it if you can afford it.

Term #7: Liability Insurance

If you have ever been in an auto accident, you know how important it is to have good liability insurance. This type of insurance protects you financially if you are found to be at fault in an accident. If you do not have adequate coverage, you could be facing a lawsuit that could cost you everything you own. That is why it is so important to make sure you have the right coverage for your needs.

Term #8: No-fault Insurance

In the United States, auto insurance is categorized as either at-fault or no-fault insurance. No-fault insurance is also called personal injury protection (PIP) insurance. No-fault insurance is mandatory in some states and optional in others. If you have no-fault insurance, your insurance company will pay for your medical expenses and lost wages up to the limit of your policy, regardless of who caused the accident.

Term #9: Personal Injury Protection (PIP)

Personal injury protection (PIP) is a type of auto insurance that provides financial protection to you and your passengers in the event of an accident. PIP coverage can help pay for medical expenses, lost wages, and other expenses related to an accident.

Term #10: SR-22

An SR-22 is a certificate of financial responsibility required by most states for high-risk drivers. If you have been involved in certain traffic violations or accidents, or if you have been convicted of a DUI, you may be required to obtain an SR-2 An SR-22 typically costs between $15 and $25, and must be filed by your insurance company with the state. Once filed, the SR-22 is valid for three years. If you fail to maintain your insurance during that time, your policy will be cancelled and your license may be suspended. If you need to obtain an SR-22, the best place to start is with your insurance agent.

How Saltmarsh Insurance Gets You The Best Auto insurance Rates 

Saltmarsh Insurance provides you with the best rates for the best combination of price and coverage. We show you the rates ranked from lowest to highest, from the most appropriate insurance companies, in accordance with the coverage you selected. In less than five minutes, you could be on your way to saving money on your automobile insurance!

For one of our representatives to contact you regarding our Automobile Insurance, click here to help you purchase your policy.

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