It is difficult to know all the ins and outs of car insurance in Harrisburg, PA. After all, the subject is not taught in school, and most people receive no formal instructions on buying coverage-;even though it is legally required for those who drive. With these facts in mind, customers should consider the facts below when purchasing an auto insurance policy.
Below is a glossary of commonly used phrases and words in auto insurance.
* The term is the period for which the policy remains in effect (typically one year).
* The declarations page is the page which summarizes coverage.
* Endorsements are policy changes such as roadside assistance and additional drivers.
* Exclusions are scenarios where the company will deny a payout. Examples include: damages sustained when using the car for income purposes, intentional damages, or damage arising from a catastrophic event.
In auto insurance, the premium is the amount the driver agrees to pay for car insurance in Harrisburg, PA. A quote is the estimated cost of the policy to be issued. Quotes are neither binding nor exact, and they can change based on the company’s inquiries into a person’s driving history, credit score, and other factors. Deductibles are the amount the customer pays before the insurance kicks in, and limits are the maximum the company will pay for a certain type of claim.
The minimum required amount of auto insurance varies by jurisdiction, but almost all states require drivers to have liability insurance to cover property damage and bodily injury caused by the policyholder. Liability coverage comes with a statutory minimum, which is often expressed as $XXXX/$XXXX/$XXXX. The first number denotes bodily injury for a single person, while the second is a per-accident figure and the third is a per-accident amount for property damage.
Personal injury protection, or PIP, protects the policyholder from bodily injury expenses incurred in an accident, regardless of fault. PIP is used in no-fault areas, where every driver must be able to pay his or her own medical bills. It is important for drivers to note that they can buy coverage in excess of the state minimum.