Signing up for car insurance can be a confusing process, especially if you don’t know what each type of coverage means. Depending on what state you’re in, you may be required to have certain things on your insurance policy that other states don’t. But wherever you are, we’re here to help you know what’s best for you and your car.
Below are 7 of the most common auto insurance terms:
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.
Because Pennsylvania and New Jersey are considered no-fault states, this term is especially important to know. Simply put, no-fault insurance was created to minimize drivers suing each other for otherwise minor injuries. It doesn’t blame anyone involved in 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 required in all no-fault states, such as Pennsylvania and New Jersey. 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.
Despite the name, full coverage does not mean you are completely covered in the event of a car accident. However, it does mean that a policy covers more than liability coverage. Full coverage policies can include comprehensive and collision coverage, rental car reimbursement, roadside assistance, and more.
If you’re financing your vehicle, collision coverage is pretty much a required expense. It covers damages to your car, regardless of whom is at fault.
Comprehensive coverage may also be mandatory if your car is being financed. It’s an excellent “just in case” coverage to have as it will cover any damage caused to your vehicle that is not from another car. This includes garage collapses, hitting a deer, stolen from a parking lot. The list goes on and on.
A car’s value begins to depreciate once you drive it off the lot (except for the rare occasion it’s a classic Porsche 911). 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 Trust Us
We at Rocco’s Collision Center have been a family owned business for over 60 years. We are dedicated to providing you with the best possible service out there for your repair. We will work with you and your insurance policy to ensure to have a stress-free repair.
We have 6 different locations across Philadelphia and Southern New Jersey areas. Feel free to give us a call at (888)-9-ROCCOS. Or, if you’d like to schedule an appointment, click here.
We look forward to helping you and showing you why we’re the best out there!