Car Insurance 101: 5 Terms You Need to Know

Car insurance is easy to ignore and even harder to figure out. We’ve all had that moment when we’re searching for car insurance and suddenly realize we don’t know what any of the terms mean. But what are those terms? Read on to find out.

Here are the five terms you need to know in car insurance:

Collision Coverage

Collision coverage is an insurance option that covers the cost of repairing damage to your vehicle in the event of an accident. This includes collisions with other vehicles or objects like telephone poles or mailboxes. While collision coverage is optional, it’s a valuable addition to your auto insurance policy, especially if you prioritize the safety of yourself and your passengers or have a history of accidents. With collision coverage, you can have peace of mind knowing that repair costs, such as those for car frame restoration or dents offered by a reputed Phoenix Auto Body Shop or its counterparts elsewhere, can be covered.

Comprehensive Coverage

A comprehensive car insurance policy offers extensive coverage, but the level of coverage depends on what you choose. Most comprehensive policies include similar types of coverage because the cost to provide them is generally the same. In simple terms, it’s an optional plan that you can get from websites like, and it protects against damage to your vehicle caused by non-collision events beyond your control. This can include theft, vandalism, and fire. Because it provides coverage for these types of incidents, comprehensive insurance is becoming more popular and is a great way to make sure you’re covered in any situation.

Uninsured Motorist Coverage

Uninsured motorist coverage refers to insurance you purchase when you are involved in a car accident that was not your fault. For example, Uninsured Motorist (UM) coverage will protect you if you are involved in a car accident with another driver that doesn’t have any insurance. Whether you are a pedestrian or someone driving your car, this coverage can help protect you. While you may think you will never be involved in this situation, it still should be a plan worth considering.

Physical Damage Coverage

Physical damage coverage (also known as “collision coverage”) is one of the most important types of insurance you need to consider when buying a new car. If you’re going for a cheaper vehicle, you may want to skip this coverage, as you can get better deals on more affordable insurance (which has a higher deductible). However, this coverage is still one of the most important to consider, as it can cover the damage to your car in the event that it suffers from any physical damage. For example, if your car gets broken into, the insurance policy will be able to cover the costs.

Medical Payments or Personal Injury Protection

What is personal injury protection? Essentially, it’s an additional layer of insurance that can help pay medical costs and lost wages if you are involved in an accident and was not at fault.

Car insurance is more than just about the price tag. It’s vital to think about the coverage and the level of protection you require to safeguard yourself from potential financial losses in the event of an accident. Having the appropriate coverage can also assist you in seeking legal representation from firms like Schuerger Shunnarah Trial Attorneys to pursue compensation for damages. Additionally, your insurance policy can offer liability coverage, shielding you from substantial claims, especially if you’re considered high-risk or if your vehicle encounters any mishaps.

It may be something you take for granted, but it is very important and should be taken seriously. If you do not have insurance, you should be careful about driving your own car. You can be sued by an uninsured car owner, which can put you in a lot of trouble. If you are involved in an accident, the other person’s insurance company will pay for your damages. However, if you have inadequate insurance and are involved in an accident, you can be sued by the other person’s insurance company for all your damages.

So, if you are a driver, be sure to have adequate car insurance today!

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