Learn Important Car Insurance Terminology
Have you ever heard of the following terms of insurance? Well, if you haven’t it’s time to learn the most important terms and what they mean. Perhaps, you already bought these coverages with your auto insurance policy; But on the other hand, you might not have them yet. Always make sure to consult your insurance agent at Aguilar Insurance in case you are questioning if you are fully insured.
Liability Insurance – Covers the damage you do to someone else in an accident. The coverage is expressed in 3 numbers. For example, 15/30/5 would mean: $15,000 for bodily injury coverage per person; $30,000 bodily injury coverage per accident; $5,000 property damage coverage per accident. Liability Insurance is a great protection. Yes, it could be expensive. But, when you find yourself in a jam, you’ll be glad you had it. And in the United States, it’s required if you want to get anywhere on wheels. Every state has different requirements for liability. For example, minimum liability limits in California is 15/30/5.
Medical Payments – Covers medical bill payments for you or passengers in your car in case of an accident.
Property Damage – Covers the repair and replacement of the other person’s property and if your damage exceeds your coverage, you can be sued for the remainder.
Collision/Comprehensive – If you want an insurance policy that will also cover damage to your own car, you’ll also want to add Collision and Comprehensive coverage on to your package. These coverages will cover your car if it is stolen, hits an animal, hit’s another car and it’s your fault, or suffers from some other act of nature. If the damage to your car exceeds 70% of the value of the vehicle, your car will get towed for salvage and you’ll get a check for a new car.
Uninsured Motorist Protection is for when someone without insurance hits your car, or you got hit and they ran. This coverage will take care of your medical bills.
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