Shopping for your first auto policy can be overwhelming. Especially since it can be difficult to parse through the difficult and obscure insurance lingo as you acquire your quotes.

Here are eight auto insurance terms you should keep an eye out for, as well as brief explanations as to what they mean for you and your vehicle.

1. Deductible

Your deductible is the amount of money you agree to pay out of pocket before your coverage covers the remainder of the claim.

Let’s say you’re in an accident that causes $5,000 worth of damage. If you have a $2,5000 deductible, you’re going to have to pay a pretty penny before your insurer covers the rest.

The lower your deductible, the less you have to pay. However, lower deductibles can mean higher monthly rates, so it’s a bit of a trade-off.

2. Premium

Though the term ‘premium’ may sound a little intimidating, it’s actually quite simple. Your premium is simply the amount of money you pay to keep your vehicle(s) insured with your carrier.

3. Comprehensive Coverage

Comprehensive coverage covers damage to your vehicle that isn’t directly caused by an auto accident. This can include things like acts of nature, theft, vandalism, and more.

It’s always a good idea to get comprehensive coverage just to give your vehicle an extra layer of protection.

4. Gap Coverage

Buying a new car is an exciting experience, but taking out an auto loan is a different matter entirely. Your car is an investment, and one you should protect.

Should you get into an accident before your loan is repaid, you’ll need to cover the remainder of the loan out of pocket.

Unless you have gap coverage, that is. With gap coverage, should your new vehicle sustain enough damage to warrant it totaled, your insurer agrees to cover the remainder of your loan.

5. Vehicle Identification Number (VIN)

Before you can get an auto insurance quote, you’ll need to provide a few details. One of the most important details is your vehicle’s VIN or vehicle identification number.

This helpful number tells your car’s history. Its make, model, and even basic schematics of much of what’s under the front hood.

6. Bodily Injury Coverage

Though no one ever hopes they’re in an auto crash, accidents happen. In the event that one or more parties involved are injured, bodily injury coverage pays for the resulting damages.

7. Coverage

All all the insurance jargon you’ll come across, this is perhaps the easiest to understand. Your coverage simply refers to what is and isn’t covered under your current policy.

Please note that you can adjust your coverage at any time should you feel your current coverage is too much or too little.

8. Claim

When an accident occurs, you’ll need to file a claim with your insurer. Your claim contains all of the details of the occurrence including time of the accident, damage sustained, and who or what was at fault.

See… now buying an auto insurance policy doesn’t have to be intimidating, especially now that you know these eight common auto insurance terms.

Ready to find coverage that fits your needs? Get in touch or get a quote today and see how easy it is to save.