When it comes to car insurance, there are a lot of terms that can be confusing. What does “deductible” or “excess” mean? However, knowing the jargon will help you make informed decisions about your policy and ensure that you get the best coverage possible. In this article, we will define four important terms for car insurance lincoln ne that you need to know.
1. Collision Coverage
Collision coverage pays for damage to your car caused by accident. It is a type of insurance that covers damage to your car when you collide with another object, such as when two cars collide or when one car collides with another object, like a tree or pole. Collision coverage for car insurance in Decatur will also cover you if your car flips over. Thus, if you have collision coverage and are in an accident, the insurer will pay for the damages to your car up to the coverage limit.
2. Comprehensive Coverage
Comprehensive coverage is a type of insurance that covers damage to your car from things other than collisions. It includes fire, theft, and vandalism. For example, if someone steals your laptop while it’s in the trunk of your vehicle or if you have a minor fender bender with another driver and both cars need repairs because they were damaged during the accident, comprehensive coverage would help pay for the repairs. Comprehensive coverage is usually optional, but it’s a good idea to have if you can afford it because it will cover a wide range of potential damages.
3. Full Coverage
Full coverage is a term that is used to describe a car insurance policy that includes both collision and comprehensive coverage. If you have full coverage, then your insurer will pay for damages to your car caused by accidents or other incidents, such as theft or vandalism. It’s important to note that the term “full coverage” can be misleading because it doesn’t mean that your policy covers everything. There may be certain types of damage that are not covered by your policy, so it’s important to read the fine print.
4. Liability Insurance
Liability insurance is the basic type of car insurance, and it’s required in most states. This coverage pays for damages you cause to other people or their property in a car accident. For instance, if you hit another car and injure the driver or damage the other car, liability insurance would help pay for those costs. Liability insurance in Decatur, GA, also covers you if you are sued because of an accident. This type of insurance is important because it can help protect you from costly legal fees and damages awarded in a lawsuit.
There you have them, the top four car insurance phoenix az that you need to know. If you’re looking for a new policy or want to make sure your current one meets your needs, it’s best to contact an insurance company so that they can explain these terms in more detail and help you find the right policy for your needs.