Car Insurance

Getting insurance is a must for any driver. Not only are we legally obligated to get our cars insured, it also provides protection against risks on the road. There are various terminologies in the world of car insurance and if you know what they mean, it can ease potential headaches when applying or talking to different providers.

Comprehensive Coverage

To start, one of the most important car insurance terms you must learn is comprehensive coverage. It provides complete protection for your car and covers many accidents that happen to it.

Comprehensive car insurance can cover you for 10 different types of damage that your car may sustain. Collision with an animal, car catching fire, vandals breaking your windshield, or the loss caused by theft are all covered in a comprehensive policy.

Liability Insurance

If you wreck your car and someone tries to steal it, they’re not just stealing your property- they are also liable to pay for any damages done. You’ll want liability insurance (lawful in many U.S. states) which covers your liability towards others, with no other coverage. Other types of insurance include owner protection (covers damage to your vehicle), comprehensive damage and personal injury protection.

Collision Coverage

This post lists 10 important terms that are common among auto insurance providers.

Full Coverage

Full coverage is important for peace of mind during an accident. This includes collision, liability, and comprehensive. The insurance premium can be expensive, with full coverage but it ensures financial protection in any eventuality.


When calculating your car insurance, it’s important to know everything there is about the limit. This is the maximum amount owed by the insurer in case of an accident.

Personal Injury Protection

Car insurance covers any injuries to the driver, passengers and other people on the road that are caused by your car. The insurance pays up to a set limit for all accidental costs such as therapy bills, medical fees and amends made to property.


The term for any damage your car insurance policy won’t cover. For example, deliberate damage is excluded, and direct claims, will not be entertained.


A car premium is what you pay to get your car insured. This price varies according to factors such as your location, age, and vehicle details. You can pay the amount in a lump sum or in instalments.


The deductible is a fixed amount that you pay out-of-pocket if you file a claim. A higher deductible will lower your premium, but will cost more in the event of an accident.

Uninsured Motor Coverage

Car insurance protects you in the event that your car is hit by a vehicle whose driver is uninsured. Uninsured motorists coverage takes care of any damages to your car or medical expenses in the case of an accident involving an individual who isn’t covered by insurance.

Here, we picture the 10 insurance terms that every vehicle owner should know. Though these important words are commonplace in a car owner’s policy, understanding exactly what they mean may not be so easy.