Looking for affordable car insurance can be confusing at times, but understanding basic information can make it a little simpler. Before speaking to a car insurance company, here are some terms that you should know that will make looking for affordable car insurance a bit easier.

 

Types of Auto Insurance

​

The following are the most common types of car insurance available, though there are others that you can add to customize your policy.

 

Liability

​

Liability insurance is typically the minimum required amount for a driver to carry. It helps cover expenses related to bodily injuries and property damage experienced by another if you are found liable for an accident.

 

Collision Coverage

​

Collision coverage is intended to cover damage if there is an accident with another vehicle or you hit an object, such as a fence or sign. Collision coverage is usually for actual cash value. It's rarely mandatory unless you owe on your vehicle.

 

Comprehensive Coverage

​

Comprehensive policies take care of damage from perils like vandalism and theft, fire, and hail. It typically covers the vehicle's actual cash value but requires a deductible.

 

Full Coverage

​

Full coverage car insurance is a term used for a combination of comprehensive, collision, and liability insurance.

 

Auto Insurance Premiums and Deductibles

​

Premiums and deductibles are often misunderstood terms in the world of insurance. However, they are essential terms to know. These simplified definitions can make them much easier to understand.

​

Premium

​

Premium is just another word for your bill. It is the amount you pay for your insurance policy either monthly or every six months.

​

Deductible

​

A deductible is an amount you are responsible for in the event of a claim. Let's say, for instance, your policy includes a $1,000 deductible per accident, and you have an accident that results in $3,000 of damages. You will need to pay that $1,000 toward getting the damage fixed before the car insurance company pays the other $2,000.

​

Some insurance policies require that you pay your deductible upfront, while others will just deduct it from your insurance payout. The specifics should be stated clearly in your policy.

​

If you are looking for affordable car insurance, give BuddyInsuresYou a call today. As a reputable car insurance company, we will help you find the best protection for your vehicle that fits your budget.