Auto Insurance can be difficult to understand. Before you begin shopping around, it’s important to make sure you understand all your auto insurance coverage options. We’re decoding common insurance terms you’re likely to encounter:

1. “Liability Insurance/Coverage” – This is the foundational auto insurance that pays out when your car causes damage to someone or something else. It’s usually written as a series of three numbers, such as 25/50/20, which are your coverage amounts in thousands of dollars.
2. “Bodily Injury Coverage” – This is the part of the three numbers provided above that covers injuries to the person in the other car. The first number ($25,000) is how much your policy will pay for each person injured in an accident. The second number ($50,000) is your policy’s cap per accident.
3. “Property Damage Coverage” – The third number is how much your policy will pay for property damage caused, such as another vehicle or a telephone pole ($20,000).
4. “Collision Coverage” –  This picks up where liability insurance leaves off. It covers your own car when you cause an accident or hit a stationary object.
5. “Comprehensive Coverage” – This covers damage to your car not caused by a collision. You need comprehensive coverage to cover things like fire, theft, vandalism, weather-related damage, and deer that come out of nowhere.
6. “Medical Expense Benefit” – Comprehensive and liability insurance don’t cover you or your passengers in an accident. Medical Expense Benefit can offset your health insurance deductible and pay out for your passengers if necessary. It’s also an added buffer if you’re liable in an accident that causes serious injuries.
7. “Uninsured/Underinsured Motorist Coverage” – Sometimes the other person’s liability insurance isn’t enough to repair/replace the damage caused. This coverage can help make up the difference and is a requirement in the state of Virginia.
8. “Deductible” – If you’re in an accident, you’ll pay a predetermined amount-—your deductible-—before your insurance coverage kicks in. Generally, a higher deductible means a lower premium.
9. “Premium” – This is the price you agree to pay in exchange for insurance coverage. In other words, your regular insurance bill.

As fellow Virginians, we know the state’s insurance requirements backwards and forwards. For more information on decoding Auto Insurance language, reach out to a local agent.

Feeling like you have a better understanding? Get a free quote today to ensure you’re covered!