Insurance terminology can sometimes be very difficult to understand, but knowing what is in your policy is important to ensure that you are getting the coverage you need and a fair price on your auto insurance in Huntsville AL. If you’re not sure exactly how to shop for insurance, or what all those confusing terms mean, here are a few of the most common ones that you may come across.
The term “personal injury protection” covers that costs for medical treatment, lost wages, and other expenses you may incur following an auto accident. It’s important to note that not all insurance in Huntsville AL will offer this protection.
Collision damage refers to damage from an accident where your vehicle collides with another vehicle or stationary object, or when your car rolls over while driving. Check your policy to ensure that this cover will apply regardless of who is found at fault for the accident.
Comprehensive coverage covers any kind of damage to your vehicle and/or another vehicle, including damage from accidents with another vehicle, or things unrelated to an accident, such as auto theft, fire, or vandalism.
Liability auto insurance in Huntsville AL covers damage to another person, property, or automobile in case of an accident where you are at fault. It may cover things like hospitalization or injury caused by an accident, and repairs to other vehicle or property damaged when you cause an accident.
Despite the requirement that all drivers carry auto insurance in Huntsville AL, there are still motorists who are uninsured and operate their vehicles illegally. If you are unfortunate enough to get in an accident where an uninsured driver is at fault, your insurance will have to cover the costs of your medical bills or fixing your vehicle, and it could cause your premiums to increase. You can purchase uninsured motorist coverage to protect against this.
The premium is the fee you pay for your insurance. You can often pay this in a wide variety of formats, either as a monthly amount, or a lump sum every 6 months or every year.
Deductibles are the out-of-pocket costs you will pay if you have to file a claim with your insurance agency. The cost of deductibles can vary pretty widely, and often are inversely correlated with the cost of your premiums-in other words, higher premiums will have lower deductibles, or vice versa.
Understanding what you are signing up for when you get auto insurance in Huntsville AL is important to ensure you get exactly the coverage you need without paying extra for things you do not need. This can also help you compare policies and find the best value for the coverage you get.
