Deciphering Auto Insurance Lingo

By Author: Alisdair Cosgrove
Total Articles: 184
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There are a number of terms that are used in auto insurance policies that do not show up in common conversation. These are words that are defined and used specifically within the auto insurance business. If you want to be in a knowlegable position where it comes to your insurance coverage, you should have, at least, some grasp of the auto insurance lingo you might encounter.

It may be good to start with a basic overview of how auto insurance is important. Obviously, the most important point of coverage is protection for the driver in case there is an accident. If you do not have insurance protection it is possible that you may be held entirely responosible for repayment on injuries or damages. This is especially true if you were at a fault for the accident. If the accident isn't your fault, you might be required to personally pay for medical bills, for yourself and others, as well as repairs or replacement on your vehicle. These points may help you understand that auto insurance is extremely necessary. They may also explain why auto insurance is mandatory in most states.

It is may be helpful to start by looking ...
... at five essential auto insurance terms that you should know about when talking about your insurance policy. They are liability coverage, physical damage coverage, medical coverage, emergency assistance coverage, and unattached equipment coverage.

Often, you will find that these terms are already familiar to you, at least in a basic sense. They may have even come up in a conversation you had with a friend about insurance. On the same token, some terms may not be as familiar. The first three, liability, physical damage, and medical coverage are used the most frequently in introductory conversations or general dialogues about car insurance. The other coverage types, emergency assistance and unattached equipment, are not featured in the average discussion about auto insurance policies. As a result, they are not readily understood by most policyholders. They are not typically considered as important as other types of coverage. Still, they do offer some great advantages if added to your policy.

Perhaps the most common term that you will see and hear is liability coverage. Essentially, this is the part of an insurance policy that covers damages caused by you during an accident. As a rule, liability coverage should prove adequate coverage for any possible damages. If you do not have enough of this coverage you may have to pay out of pocket expenses to the person who was the victim in the accident. Physical damage coverage is pretty straightforward; it is used to pay for repairs or replacement of your vehicle. Medical coverage is used to pay for medical expenses for both you, the driver, and any passengers may have after an accident.

The last two terms are different. First, emergency assistance coverage offers roadside assistance benefits. If it is added to your insurance policy you will get access tow services that will keep you from being stranded along the side of the road. The other, unattached equipment coverage, provides you with coverage that equipment that may not be permanent attachments for your automobile. They may be expensive additions like fancy lighting, customizations, or sound systems; all may be eligible for protection under this last form of coverage.

Once you know what these auto insurance terms are all about, you will be better equipped to deal with insurance matters. You will then be able to determine if a policy will do the job you want it to.
Alisdair Cosgrove loves to write about finance issues and advise on how people can save money on their personal finance outgoings and can find more of his work at the insurance site www.Peppercoin.com, offering cheap auto insurance and also great tips on gap insurance. Visit today to read more of Alisdair's great articles.