Car insurance is something we all know we should have and most of us do have one. It is, however, equally important to know the terminologies that surround the world of motor insurance. Most of us do not really know the nitty-gritties of automobile insurance; and if it is your first car, then chances are, you are too afraid to ask. Keeping this in mind, we have put together a list of some insurance terms that you should know as a car-owner:

• Auto insurance claim

An auto insurance claim is a formally documented request made to your insurer in case of any damage that is caused to your vehicle.

• Liability coverage

When an automobile accident occurs due to an oversight on your part, you are said to be liable to pay the damages. The part of your insurance policy that covers your liability amount is known as the liability coverage. There are two types of liability coverage that you are supposed to have—property damage liability insurance, which covers costs of damages to the car, and bodily injury liability insurance, which covers the cost of any injury that may have been caused to those of the concerned vehicle.

• Comprehensive coverage

A provision in your insurance policy that covers damages caused due to any reason other than a collision is known as comprehensive coverage. So, for fixing damages caused by incidents like a tree falling on your car, vandalism, theft, animals, etc., your comprehensive coverage can be used.

• Uninsured coverage

Uninsured coverage is needed when the accident is caused by someone (other than yourself) who does not have insurance. In this case, your insurance provider will cover all the costs.

• Underinsured coverage

If the insurance of the person (someone other than yourself) who has caused this accident is not enough to cover the costs, then the remaining part of the cost will be covered by your insurance provider.

• Personal injury protection

Personal injury protection is a provision in your auto insurance policy that covers the cost of the medical requirements of a policyholder in the event of an accident, regardless of whom it was caused by. It covers all medical expenses ranging from hospital bills to childcare and rehabilitation, depending on the severity of the accident.

• Flood insurance

The country experiences several (and frequent) incidents of flooding, which cause tremendous material damage, including damage to automobiles. Hence, it is crucial for those living in flood-prone areas to have flood insurance coverage, the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program being one of the most prominent.

These are the most commonly used terms associated with automobile insurance. It is important to do a thorough research about the market before committing to a specific automobile insurance policy.