One way to be sure you're getting a square deal on a policy is to clearly understand car insurance quotes terms and conditions. Here's a brief primer
Every insurance company is a little different, but car insurance policies all use the same basic structures, concepts and definitions. Your car insurance terms and conditions are the binding parts of the policy. Understanding car insurance quotes terms and conditions will allow you to make a more informed decision when you do select a car insurance policy. Most insurance contracts can be divided into five basic parts:
Declarations – these define the agreement parameters you and your insurance company have decided on, such as:
- Who is covered on the policy
- What types of vehicles are covered
- What type of policy you've purchased
- All the coverage options you've selected
- What are the policy limits and levels of each coverage option
- Deductibles (where applicable)
Coverage and agreements—these define, specifically, what your insurance company will pay for in the case of a claim
Exclusions – these define what the company categorically excludes in terms of coverage (find more details about exclusions here)
Conditions – these outline the legal obligations you and your insurer have; for example, you must pay your policy fees on time and the company must provide you with methods for filing claims and getting reimbursed.
Definitions – this section of the policy defines the terms used in the contract and describes your rights under the policy agreement.
Each car insurance policy also provides some basic areas of coverage:
Liability – this is the initial tier of coverage; it guarantees that your insurance company will cover the losses of injured parties, up to a specific maximum value, if you are found at fault in a car accident. All states set required liability insurance levels for its licensed drivers and this is often referred to as mandatory minimum insurance.
Collision coverage – is required by most lenders and lessees with an interest in a car. It covers damage to the covered vehicle resulting from collisions with other cars, with objects or that result from a rollover accident (even if you cause the accident.) Collision insurance includes a deductible, or an amount you must pay out-of-pocket for repairs before your insurer pays the remainder. You can typically save money on collision coverage if you take a higher deductible.
Comprehensive coverage – a tier higher than collision, it covers your vehicle for damage or loss stemming from non-collision events like fire, flood, theft and vandalism and also comes with a deductible
Riders – you can also request car insurance quotes to include coverage for additional items beyond the basic coverage types; these extra items are referred to as “riders” or "endorsements". Typical insurance riders include:
- Medical payments
- Pet coverage in case of a car accident
- Personal injury protection (PIP)
- Uninsured/underinsured motorists coverage.
Some states require certain riders to be carried on mandatory minimum insurance as well. (For example, sixteen states require drivers to carry PIP coverage.)
When you purchase car insurance, make sure you get the right coverage for you and your situation and to be sure, closely read your car insurance quotes terms and conditions. You don’t want to overpay for too much coverage, nor do you want to be under protected or underinsured. Reply! can help you in this regard by putting you in touch with local insurance professionals near you who can answer any questions you need clarified to ensure you get all the coverage you need.