From Fur Babies to Fire Hydrants: Your Home Insurance Premiums

When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.

Important Terms To Know When Comparing Car Insurance Quotes

Insurance Blog

Car insurance quotes consist of much more than just how much you pay. They include all sorts of details that stipulate what protections are and aren't provided, and some of those details are invariably written in technical jargon. As you compare different car insurance quotes, here are some important terms to know.

Coverage: General Type of Protection

The protections that car insurance policies are called "coverages," and policies generally provide the same broad coverage. For example, you'll likely come across the following coverages:

  • Collision coverage that protects against accidents that damage the vehicle
  • Comprehensive coverage that protects against non-accident incidents that damage the vehicle
  • Bodily injury liability coverage that protects against injuries to persons outside of the vehicle
  • Personal injury protection that protects against injuries to persons inside the vehicle

Each policy's coverages will have specific terms and conditions, but the broad protections that these coverages afford are the same across most policies. For instance, comprehensive coverage always protects against covered non-accident incidents that cause damage.

Exclusions: Specific Details Not Covered

Exclusions are one place where a car insurance policy's protections can become a little more specific. An exclusion is something that a coverage doesn't protect against. 

For instance, all of the above coverages might provide protection in most incidents where there's vehicle damage or bodily injury. Many policies will have an exclusion on these coverages that voids protection if the driver is intoxicated at the time of a claim, however. 

Exclusions for intoxicated driving are pretty universal, as driving under the influence is illegal. Coverages can have other exclusions too, however, and the exclusions they have can vary from one policy to the next. The exclusions that one policy's collision coverage lists won't necessarily be found in another policy's collision coverage.

If you're concerned about a specific risk, check whether any policy excludes that specific risk. An exclusion would be found in the policy's relevant coverage section.

Limits: The Maximum Amount Paid

Limits detail the maximum amount that an insurance policy will pay for covered claims, and policies can have different limits for their various coverages.

For instance, comprehensive and collision overages both frequently have limits that are equal to the insured vehicle's value, which might be thousands of dollars for many vehicles. Bodily liability injury coverage can have a limit in the hundreds of thousands of dollars, or even millions. 

You can choose the limits for your policy's protections. Carefully consider how much you want each coverage's limit to be, and contact a car insurance provider to learn more.


11 May 2022