Decoding Confusing Car Insurance Terms

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Decoding Confusing Car Insurance Terms, confusing car insurance terms

Here are some confusing car insurance terms defined.

As a car owner, it is your responsibility to secure the proper auto insurance coverages to fit your needs. However, this is difficult to do when you do not have a clear understanding of the various types of insurance coverages that are available to you. Many drivers have trouble figuring out exactly what certain types of insurance actually cover. So, to make things a bit easier for you, here are some of the most confusing car insurance terms explained.

  • Comprehensive

When you see the term comprehensive insurance, you might assume that this type of policy includes a wide range of various coverages for your car. In actuality, comprehensive insurance offers coverage for the damages that your car might sustain from a non-collision event. For instance, comprehensive insurance offers coverage to repair or replace your vehicle if it’s stolen, vandalized, or damaged by fire, extreme weather event, or so on. This type of insurance does not cover damage to other vehicles, property, or personal injuries.

  • Bodily Injury Liability

As the name suggests, this type of insurance offers coverage for bodily injuries. However, it’s important to know that this coverage only extends to third-party injuries. This type of insurance kicks in when you are at fault for an accident that results in injuries to another person. It does not actually offer coverage for your own injuries. If you want coverage for the injuries that you and your passengers might sustain during an accident, then you will actually have to secure additional coverages.

  • Property Damage Liability

Property damage liability insurance offers coverage to third-party property damage. Just like bodily injury liability, this coverage kicks in when you are at fault for an accident that caused damage to another vehicle or another type of property. Again, this insurance will not offer coverage for the damages that your own car sustains in the accident. If you want to secure this type of coverage, then you will need to secure another type of auto insurance.

These are some confusing car insurance terms explained in a little bit more detail.  Do you have additional questions regarding your auto insurance?  Then don’t hesitate to contact the team at John Scott Insurance.  Our experts are ready to assist you with all your coverage needs today.

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