What’s in a quote? If it’s an insurance quote – quite a bit

The most common question most people ask when looking for auto insurance is “what is it going to cost,” and they proceed to seek out a quote from whichever company they last saw on television or a billboard offering a good deal.  Our primary focus immediately  turns to finding the cheapest car insurance quote possible, but we often times don’t realize exactly what we are getting in a new policy.

This is where we stress savings and tend to stray, only to find out at a very inopportune time that we are not covered as well as we initially thought we were.  When an unfortunate accident or loss of property occurs is really not the best time to find out that you are not properly covered, and with the average car insurance quote, there are a variety of vital bits of info that you should be aware of.  One important point that you should pay careful attention to is gaining an understanding of the abbreviations and terminology used in the quote.

Some abbreviations you’ll want to note before reading another car insurance quote are:

  1. “PD” or Property Damage – the amount indicated under this portion of the quote will let you know how much damage the company will pay for should you accidentally crash into someone’s vehicle or other property.  (If you are in an accident, your insurance company will be your biggest ally, coming to bat for you when the property owners come after you to file suit against you).
  2. “BI” or Bodily Injury – this amount will indicate the amount of medical costs your insurer will pay in the event you have an accident and injure other people.  (Under the heading of bodily injury, you will likely see numbers that indicate how much is available for one passenger and a maximum number that covers all passengers together).
  3. “UM” or Uninsured Motorist – the amounts under this category will tell you how much coverage you have should an uninsured driver cause you injury.  (Typically, when another driver is at fault – you will seek payment for damages from their insurance company, but if the other driver has no insurance, having uninsured motorist coverage as part of your policy will make sure that you are still covered.)

There are other points to be understood when reading a car insurance quote, but these are a few of the most important; remembering these will help you to make a more informed decision when choosing your next insurance policy and carrier.