How much do you know about car insurance? If the answer is not much, we can help! Here are some important terms to know when it comes to getting the car insurance you need for your vehicle:
- Collision Coverage – This coverage pays for damage to your vehicle if it hits something (a car or an object), is hit by another car, or it rolls over.
- Comprehensive Coverage – This type of policy covers theft, vandalism, damage caused by hitting an animal, and some weather events and natural disasters. Basically, it pays for damages that weren’t caused by a collision with another vehicle or object. It often includes windshield coverage.
- Liability Coverage – Liability coverage is what protects you if you cause an accident, hurt someone, or cause damage to property. If you are sued by another party, legal expenses may also be covered. Typically, this type of coverage is required in most states.
- Deductible – This is the amount you, as the policyholder, would be responsible to pay out of pocket. Deductibles can be as low as $250 or as high as $2,000.
- Subrogation – After an accident, it may be determined that the other driver was at fault. If your insurance company made any payments to repair your vehicle, they may seek to be reimbursed by the other driver’s auto insurance company in a practice known as subrogation. If they are successful, you may receive some or all of your deductible back. Keep in mind that if you are found at fault, the other driver’s insurance may subrogate against your insurance.
- Depreciation – Your car is worth a certain amount of money when you buy it. However, once you drive it, and as it ages, the value will go down. This is called depreciation. The age, wear and tear, and other factors go into determining just how much and how fast the car loses value. The value of the car is important when the insurance company is determining how to handle a claim.
- Total Loss – Also referred to a car being “totaled,” this is when the insurance company decides the car is beyond repair and is no longer safe to drive. If your car is considered a total loss, the insurance company will handle your claim differently than if they decide to reimburse for repairs.
If you need auto financing but your credit is keeping you from getting approved, CreditYes can help! We can match you with a dealership in your area that will be with you every step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!