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Glossary for Understanding a Car Insurance Quote

You need to have a good understanding of the insurance industry before you can effectively evaluate quotes from insurance carriers. Knowledge of key terms and types of insurance can help you find the best car insurance quote for your needs. Use the following glossary when requesting and comparing insurance quotes from major providers.

Car Insurance Quote

Initial offer from an insurance company based on preliminary information you provide. If you accept the quote, the insurance company will verify information, review your driving record and credit history, and make a final offer for the coverage you want to buy. The final rate may be different than the quoted estimate depending on the verification results.

Declarations Page

The declarations page is usually the first or second page of policy that provides a summary of an insurance policy. It is a detailing of the effective dates of the policy, contact information for the policyholder, types of coverage included, coverage limits, deductibles, and premiums.

Deductible

Several types of insurance have a deductible which is the established amount of money you must pay before the insurance company will pay any amount remaining on a claim. By increasing deductibles, you can get a car insurance quote with lower rates.

Premiums

The amount you, as the policyholder, are required to pay each year to keep your insurance coverage. When you pay your premiums, you get an insurance card as proof you have coverage as legally required to drive. Depending on your insurance carrier, you can pay premiums on an annual or monthly basis.

Insurance Claim

A claim is a request submitted by you to the insurance company for vehicle damage or medical bills associated with an accident that is covered by the policy. It is usually submitted after an initial phone call or email to the insurance company apprising them of the situation.

Liability Insurance

Often referred to as minimum coverage, liability insurance includes bodily injury and property liability coverage. Liability insurance pays for medical bills and vehicle repair bills for other drivers when you are at fault. It may not cover your expenses or those of your passengers.

Collision Insurance

Damage to your vehicle caused by collisions not involving a car accident is covered by this type of insurance. It covers everything from backing into a pole to bumping another vehicle in a parking lot.

Comprehensive Insurance

Vehicle damage is not only caused by car accidents. Comprehensive insurance provides coverage for damage caused by hitting an animal, weather conditions like hailstorms, and other non-vehicle incidents such as fallen tree branches. Vehicle thefts are usually covered by comprehensive insurance.

Uninsured/Underinsured Motorist Insurance

Having this insurance guarantees your medical bills are covered if you are injured by a driver who does not have insurance or who has insufficient coverage. Hit-and-run accidents also are covered by this insurance.

Personal Injury Protection (PIP)

PIP covers injuries sustained by you and your passengers. Covered costs include funeral expenses, medical bills, and lost wages. While this insurance is mandatory in more than a dozen states, it is completely optional in others so it may not be included on an initial car insurance quote.

» Basics of Getting a Car Insurance Quote

You need to have specific information available to get an accurate car insurance quote. Learn about the basics of getting and comparing quotes so you can find a policy that meets your needs.

» Glossary for Understanding a Car Insurance Quote

Understanding a car insurance quote requires knowledge of specific terms. Use this glossary to consider quotes so you can determine which one offers the best value for your money.

» Car Insurance Quote Tips

Use tips from experts to find a car insurance quote that is affordable and provides excellent benefits. There are specific actions you can take to locate incredible deals that include lower premiums.

» Factors Affecting Every Car Insurance Quote

Discover the factors that have the greatest impact on a car insurance quote so you can take steps to mitigate negative factors while leveraging positive ones to get the best policy.

Rates

» How Gender Affects a Car Insurance Quote

Insurance companies include gender among the various factors used to determine policy premiums. Since you have no control over your gender, it can be frustrating if you are being penalized for being male or female. By understanding how gender affects every car insurance quote, you are better able to find great deals on quality policies.