Key Terms and Definitions You Should Know

The more you know about policies, the better your insurance decisions will be. Get everything you need to know about your auto policy here.

About Liability & Medical Coverage

A major component of affordable auto insurance online is liability coverage. Liability is usually the portion of your policy that is required by most states. Typically, states require minimum levels of both bodily injury and property damage liability. You will want to be sure to include these coverages when you get quotes on affordable auto insurance online. Medical payments is also an important component of your policy. Here is an explanation of each type of coverage:

  • Bodily injury liability. If you kill or injure someone while operating your automobile, this will pay for the ensuing expenses. Covered costs might include the other drivers' medical expenses, burial costs, emergency aid at the scene of the accident, etc.
  • Property damage liability. If you damage someone else's vehicle or other property while operating your automobile, property damage will go towards the expenses. For example, it would the repairs to another driver's car in a covered accident in which you were at fault.
  • Medical payments (personal injury). This will help you pay for your medical expenses in a covered accident, regardless of who's at fault.
  • Uninsured/underinsured driver. If a driver with no insurance or inadequate levels of protection injures you or one of your passengers, this will help pay for your medical expenses. In some states, you can also get a plan that allows you to get reimbursed for damages to your car or truck by an uninsured motorist.

Protecting Your Car

You will also want to make sure your quotes include protection for your vehicle. Here are the relevant components:

  • Collision. This option pays to repair or replace your car or truck up to the cash value of the car or truck in the event of a collision.
  • Comprehensive. Your vehicle can be affected by more than just collisions. For non-accident-related issues, you can get comprehensive to pay for damages caused by weather, theft, vandalism, falling objects, etc.

For questions you may have, check out our frequently asked questions for answers.