Signing up for car insurance can be a confusing process, especially if you’re not sure what all the different types of coverage mean. You might even be required to have certain things on your insurance policy that other states don’t. But wherever you are, we at 3D Collision Centers are here to help you know what’s best for you and your car.
Below are 7 of the most common auto insurance terms:
Deductible
Deductible refers to the amount you’re required to pay out of pocket for repairs before insurance comes into effect. If you have a low monthly payment on your car, chances are you’ll have a higher deductible.
No-fault insurance
Here in Pennsylvania, we are considered “no-fault states.” This type of insurance was created to lessen the number of drivers who’d sue each other for minor injuries. In fact, in no-fault states, nobody gets blamed for the accident. Both parties insurance companies will pay injury benefits to the policy owner, no matter who was at fault in the accident. There is a limit in each state for the amount of coverage for each party. It’s best to check with your policyholder to see what your state requires and the limit.
PIP – Personal Injury Protection
This is a requirement in all no-fault states. Personal Injury Protection, or PIP for short, covers funeral costs, lost wages, medical expenses, and other essential services you’re unable to do because of injuries from the accident.
Full Coverage
Despite the name, full coverage does not mean you are fully covered after getting in an accident. However, it does mean that a policy covers more than liability coverage. Full coverage policies can include comprehensive and collision coverage, reimbursement for a rental, roadside assistance, and more.
Collision Coverage
If you’re financing your vehicle, collision coverage is pretty much mandatory. It covers damages to your car, regardless of whom is at fault.
Comprehensive Coverage
Comprehensive coverage may also be required if your car is being financed. It’s often referred to as a “just in case” coverage since it covers any damage caused to your vehicle that is not from another car. This includes weather damage, garage collapses, hitting a deer, stolen from a parking lot, etc. The possibilities are endless of what is covered under comprehensive coverage.
Gap Insurance
The value of your car will start to depreciate once you drive it off the dealership lot. If you get hit after you’ve already begun making payments, you’ll pay for whatever is the remaining amount, after the value of the car is paid for by your policy through gap insurance. You might be stuck paying thousands of dollars for a vehicle that is totaled. Gap insurance isn’t required, but it’s something to consider if your car is a lease or a monthly payment.
Why Choose Us
We at 3D Collision Centers are dedicating to answering all of your insurance questions and providing you with the highest level of repair for your vehicle. All of our technicians are I-CAR Gold Class certified, which is the highest level of training a technician can receive. We have 7 different locations across Montgomery, Chester, and Delaware counties. Feel free to call us at any time at (877)-692-7776. Or, if you’d like to call any of our locations directly, click here. We look forward to hearing from you and showing you the 3D Difference!
