Let’s face it—car insurance is pretty much the most boring talking point imaginable. With that said, sometimes car insurance is something that needs to come up. As boring as it may be, it is important and there are certain buzzwords you should be familiar with. Keep reading to learn more.
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5 important car insurance phrases you should know
Premium
This is a rather rudimentary term, but it can often get confused for something else. Your premium is what you pay every month to your insurer. Whether you file a claim or not, you have to pay your insurance provider a premium every month. The amount of your premium is often dependent on your deductible.
Deductible
Nice segue, right? If you want to have a lower monthly premium, you will likely have to have a higher deductible. A deductible is the amount of money you have to pay out of pocket after filing a claim. Once you pay that amount, insurance money will kick in. Most car insurance deductibles range between $0 and $1,500. So, if you have a $500 deductible, that is what you have to pay before your insurer processes your claim.
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Collision coverage
This sounds pretty intuitive, but it’s an important type of coverage to know about. Collision coverage will have your back if your vehicle is damaged when another vehicle hits it. Payouts on this type of insurance are often limited to the cash value of your vehicle. So, collision coverage on an older model might not be worthwhile. Talk to your provider to learn more about options. 
Comprehensive coverage
Comprehensive coverage goes above and beyond. This type of insurance will cover you in the event that your vehicle is damaged by weather, theft, falling debris, or natural disasters.
Bodily injury liability
What if you cause a collision that results in injury or death of someone else? We pray that will never happen, but in that worst-case scenario, a bodily injury liability can protect you in the courtroom. This can pay for legal defense fees, lost wages, and medical expenses.
