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Auto insurance can be full of complex wording and complicated terminology. Sometimes, it can confuse the best of people. This article will help you understand the different terms and phrases that you are likely to encounter while shopping for insurance. When you actually understand the terms of the agreement, you will be better able to decide whether it's the correct auto insurance policy for you.
Prior to installing aftermarket additions on your car, find out from your insurer how much will be covered if the car is damaged or stolen. Most of the time, insurance companies do not cover these items.
When you are shopping around for auto insurance, get quotes from many companies. Rates can be very different depending on which company you choose. To make sure that you are not spending too much on your insurance, you will want to shop around for new quotes at least one time ever year. Being sure that the coverage is the same between the quotes that you are comparing.
Pay attention to the insured driver on your policy. There are many times when an accident happened with a friend who had borrowed somebody's is my car insured car; the insurance refused to pay. There is an additional coverage you can purchase as part of your policy that will let you loan your car to others if you choose. This option will cost you more though.
Purchase property damage liability when you buy your car insurance. This will take care of any damages that your car causes in an accident. There are only three states which don't require you to have this coverage in your auto insurance, and there is sound logic behind those which have chosen to! However, in the event of an accident occurring, property damage liability could prevent you from having a very large bill.
Hopefully, you understand many of the most common insurance terms, and you'll be able to find an auto insurance policy that best suits your situation. Knowing what your choices are is a good way to gain confidence in making the right decisions.