10 Must-Know Car Insurance Definitions

Whether you're a novice or a well-seasoned car or truck driver, no manner of caution will round out the extra security that insurance can offer. This said, it's not enough to merely buy car insurance to cover the operation of your car. It also helps to back up your experience with a clear idea of common insurance terms and how they factor in with your overall insurance policy.

For car and truck insurance policy buyers, ten commons terms and definitions for certain auto insurance policies include:

• Bodily injury liability offers protection on the chance you kill or injure someone while operating your car. It can also provide for your legal defense if the other party in the accident files a legal claim against you. On the chance of a gravely serious accident, you may wish to purchase sufficient insurance to protect you if a judgment is brought up against you in a lawsuit.

• Property damage liability provides coverage if your automobile damages another's property. Full coverage in this form may also provide you with legal defense on the chance the other party files a legal claim against you.

• Collision coverage pays for damages to your truck or car when it collides with, or is hit by, another object or vehicle. For older cars, you may wish to consider skipping this coverage, as coverage of this kind is usually limited to your car's cash value.

• Comprehensive physical damage coverage covers losses stemming from events other than collision. As an example, comprehensive insurance offers coverage to your car or truck in the event they're stolen, or damaged by flood, or by fire or animals.

• Medical payments, no-fault or personal injury protection coverage normally pays for medical expenses incurred by a driver and passengers injured in your car. You may even be covered for injury if harm comes to as a pedestrian.

• Uninsured motorists coverage covers your injuries caused by an uninsured driver. In some states, this includes a injury incurred by a hit-and-run driver. Some states also allow coverage for damage to your vehicle. Assuming the majority of uninsured motorists, it is important to have this coverage, even in states with no-fault insurance.

• No-fault insurance: Some states limit the right to sue another party for damages caused by negligence. In exchange for this limitation, expanded first party benefits are offered. No-fault insurance may also come in the form of insurance whereby someone's financial losses arising from an auto accident are covered by their insurer regardless of who was at fault.

• Rental reimbursement pays for the cost of renting a vehicle - usually up to $25 a day - when your car or truck is damaged and cannot be used as a result of a incident covered by collision or comprehensive coverages.

• Deductible: This is a per-claim or per-accident sum of money which a policyholder agrees to pay toward the total amount of an insured loss.

• Adjuster: This is a person who investigates accidents or damages incurred in any incident, and who helps determine the settling of losses for an insurance carrier.

Still Need More Help?

With these many terms and definitions to remember, it's no wonder you might need clarification on some or all of these terms. Consult with your insurance agent for more details.

Sources:

Auto Insurance Coverage, GEICO Auto Insurance

Glossary of Auto Insurance Terms, Automotive.com