Auto Insurance Glossary

When shopping for auto insurance you will want to be familiar with the terms listed below.  They will help to ensure that you get the best possible deal.

Auto Insurance: Auto insurance will cover you against several types of accidents.  The types of auto insurance that you can buy include comprehensive and collision, bodily injury liability, property damage liability, and medical payments.

Bodily Injury Liability: This will protect you legally in the case of injury or death to another party due to an automobile accident

Collision: This part of auto insurance covers your vehicle in the case of an accident with another car or object.

Comprehensive: This segment of auto insurance covers your vehicle in cases of theft, fire, or an act of vandalism. 

Deductible: This is the amount of money that you have to pay before your auto insurance company takes on the remainder of the bill.

Medical Coverage: This part of auto insurance will cover the medical costs of any passengers in your car, or your own medical costs if you are driving a vehicle that is not your own.  May also include funeral costs.

Premium: The amount of money that is paid to remain on an auto insurance policy.

Property Damage Liability: This portion of your auto insurance covers damage to another’s property in the event of an automobile accident.

Vehicle Identification Number: This is also know as a VIN number, and is used to identify a particular car by make, model, and year.