Car Insurance Terminology
Filed under Insurance
Collision: Pays for the damages to your car that occur from either hitting another car or object.
Comprehensive: Pays for the damages to your car that are not a result of a collision (floods, hail, fire, theft, or vandalism).
Personal Liability: Pays claims against you. Covering the legal fees in the event your car damages property, injures or kills someone in an accident.
Property Damage: Pays for legal defense if your car damages someone’s property.
Medical Payments: Pays medical expenses of the driver and the passengers of your car in an accident.
Uninsured Motorist: Pays for injuries caused by uninsured or under insured or hit and run driver.
Gap Insurance: With today’s creative financing such as extending the length of time of the term, it’s possible for a person to fall into a situation where if the car is wrecked and totaled. But the owner’s insurance will only pay the market value of the car. Not what you owe on it. This could leave you holding the bag for the difference. Gap Insurance is sold for protection from this scenario.
