Car Insurance Terms You Need to Know

1. Car Insurance Terms You Need to KnowBy

2. Anyone who drives a car needs to have insurance, and it's important to understand how such insurance works and what type you need to have. To do that, you have to know what certain car insurance terms mean. Here are some of the most common car insurance terms you are likely to come across.

3. This is the amount you pay for your car insurance coverage. With most policies, you pay this amount monthly, but some policies allow you to pay quarterly or annually. How much your premium is depends on a number of factors, including what kind of car you have, the level of insurance coverage you have, and your driving record. Premium

4. A deductible is the amount of money you have to pay out of pocket on a claim before your insurance coverage kicks in. For example, if your policy has a deductible of $500, each time you file a claim you will have to pay the first $500 and your insurance policy will pay the remaining cost. You can usually choose the amount of deductible you are willing to pay. The higher you set it, the lower your premiums will typically be. Deductible

5. Liability is the absolute minimum amount of car insurance you are required to carry in most states. Liability coverage will pay for damage you cause to people and property in an accident that is your fault. It does not provide any coverage for your own vehicle. There is no deductible to pay for liability coverage. Liability

6. Collision coverage will pay for damage you cause to your own car in a collision that is your fault. If you hit another car, your liability coverage pays for the other driver's car and your collision coverage pays to fix your car, minus whatever deductible you owe. Collision

7. Comprehensive coverage pays for damage to your car caused by something other than a collision. This may be theft, vandalism, hail damage, a tree falling on it, or a fire. Comprehensive coverage is also affected by your deductible. Comprehensive

8. Personal injury protection, often called "PIP" or "no-fault" insurance, helps pay for accident-related expenses such as medical costs not covered by health insurance or lost wages due to an injury. PIP is required in some states. Personal Injury Protection

9. Though drivers are supposed to have car insurance, some don't. If an uninsured driver hits you, you may have to sue to get the damage paid for. If you have uninsured motorist coverage, your insurer will pay and then attempt to get reimbursed by the uninsured driver. Uninsured Motorist

10. American TriStar Insurance Services American Tri-Star is a Insurance company base in San Diego, CA. We are specializes in auto insurance, our highly experienced staff will gladly answer all your questions, while getting you started with the most comprehensive and affordable insurance coverage available. Call us at 619-325-0326 to get a free quote. http://www.americantristarinsurance.com/ Phone: 619-272-2100 Address: 5945 Mission Gorge Rd. Suite 6-7San Diego, CA 92120