Once you have received your car insurance policies, the first thing you want to do is read over it to make sure all the information is correct.
You may find this kind of confusing with all the insurance terms that are used.
There will be at least five terms that you will need to be familiar with while reading your policy.
Once you are, it will all make sense.
The first is collision coverage.
This is the coverage that will pay to repair your car if you are in an accident.
In the case of an accident this will be the part of your insurance that will cover your car.
It will make repairs to any part that may have been destroyed.
It will cover your car even if it needs to be repainted to restore it to the original condition.
The second is comprehensive coverage.
This will cover you for anything else that may happen to your car.
If you car is stolen, burnt in a fire, or a tree falls on it, this coverage will come in and pay.
Make sure you read this part carefully so that you fully understand all it covers.
This may differ depending on the company that you choose.
The third is deductible.
This will be the amount that you will be obligated to pay before the insurance company will pay.
You choose the amount of your deductible at the time you purchase your policy.
If you choose a $250 deductible then the amount the insurance company pays will be reduced by that much before they pay you.
This will always be the amount that you are responsible for.
The forth is liability.
This part covers any damage you may cause to an automobile or property that belongs to someone else.
This coverage is required by law in every state.
No matter where you live you will be required to have this coverage on any vehicle that you own.
If you are in an accident and damage someone's car or property this will cover the cost.
The fifth is medical payment coverage.
In the event that someone is hurt in an accident that you have caused this coverage will take care of the medical expense that you or the other party may have.
This will cover the ambulance ride, emergency room bill, or any follow-up treatment that one may need.
The other coverage's make sure the cars are taken care of and this will make sure that the people are taken care of.
These are just five important terms that you need to know when dealing with car insurance policies.
If you have any questions about your policy your best bet is to call your agent or insurance company.
They can help you to understand any part of your policy.
Before you get behind the wheel know what your coverage is because the scene of the accident is not the place to start wondering.