Insurance can be a complicated matter for any individual who has had the luxury of their parents purchasing their coverage for them. However, as you become a responsible adult, it is important that you fully understand what coverage is needed. Since auto insurance is required by law, we have gathered a list of the top 5 most misunderstood car insurance terms for your knowledge.
Comprehensive – Some people assume comprehensive means “full coverage,” when in reality, it refers to the coverage you have opted for on your vehicle. This coverage is not required by law, but those leasing their vehicles may be required to purchase this recommended coverage. Comprehensive coverage provides your own vehicle with protection against all damages other than a collision.
Collision- Provides coverage for damage to your vehicle regardless of who is at fault. This coverage just like Comprehensive is subject to your chosen deductible.
Bodily Injury Liability Insurance – Nearly every state requires motorists to opt for bodily injury liability insurance, as it ensures that someone injured in an accident you are at fault for receives their deserving compensation. This coverage does not pay for injuries endured by anyone in your vehicle, including you.
Property Damage Liability Insurance – Also commonly required by law, property damage liability insurance will pay for damage that you cause to someone else’s property, including their vehicle.
Personal Injury Protection – Many states have no-fault insurance laws and those living in these states are required to purchase personal injury protection. This is because drivers in these states are required to file medical concerns with their own insurance company, regardless of who caused the accident.
Deductibles – Many people increase their deductible amount to make it more favorable without truly understanding its role, since they do not have to pay it up front. You can increase your deductible to make for a less expensive premium, but you must be prepared to pay that amount once it comes time to file a claim.
Contact Mike Leonard Insurance Agency in North Texas. We’ll work to get you the right coverage from one of our carriers Kemper, MetLife, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance so you can rest easy with excellent protection.