Blog – Vernfonk Insurance

Have you ever tried to read your car insurance policy documents?  They can get pretty confusing, using terms the average person doesn’t understand.  Knowing exactly what’s in your auto insurance policy is important because you want to make sure you’re covered correctly and that you’re not paying for anything extra.

Here are the common terms that you’ll want to be familiar with when shopping for car insurance:

• Bodily Injury Liability Coverage: Sometimes referred to as “BI”, it pays for injuries to other people involved besides the driver in an at fault accident. This liability coverage also can cover the costs of legal fees if you are sued.
  
• Comprehensive Coverage: This type of coverage covers the costs of repair on your vehicle for damage caused by an event that doesn’t involve a collision. Comprehensive coverage can help pay for repair/replacement costs due to fire, theft, windstorm, flood and theft/vandalism.
• Collision Coverage: This coverage types covers the costs of repair to your vehicle if it collides with another object or if it flips over. This is the most common type of insurance coverage and there are typically state required minimums for protection for all cars.
• Property Damage Liability: Sometimes referred to as (PD), it pays for damage to other people’s property from an accident where you are at fault. It can also help pay for the costs of legal fees if you are sued.
• Uninsured/Underinsured Motorist Coverage: These types of coverages help cover you if you are in an accident and the other person at fault doesn’t have enough or any insurance to cover your repair costs or medical bills.

If you have any other questions about what the terms in your auto insurance policy mean, or if you’re looking for the best car insurance rates around, give us a call today!