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Knowing Key Terms for Auto Insurance

Knowing certain key terms when it comes to choosing an auto insurance is very important. Many people don’t know a lot about car insurance so it becomes difficult to make the right decision when you are not well versed on the topic. But have no fear, The Maryland Auto Insurance Fund (MAIF) is here to help!

Liability Coverage

Liability insurance is an important part of any auto insurance package. Liability insurance keeps you covered for anything you may be liable for, or at fault for. For instance, if you get into an accident, and it is discovered that you are “at fault,” the liability insurance will make sure you are covered for your part. This may include payments that need to be made toward things like the medical bill or car parts. Without liability insurance, you may be required to pay out of pocket, which can be a hassle on your finances. It’s better to be safe than sorry in the long run. Liability coverage is good insurance to have just in case.

Comprehensive Coverage

Compressive coverage helps cover the cost of a car that has been damaged. If your car has been damaged due to fire, theft, natural disasters, animal damage or vandalism, compressive coverage can help cover the cost. It is important to note that comprehensive coverage doesn’t cover collisions, which is a whole separate branch of insurance. Comprehensive coverage also doesn’t cover damage to another car after a collision or their medical expenses.

You’re probably wondering if you even need comprehensive coverage. Well, drivers should estimate the value of their car. Once you know the value of your car and the cost of the comprehensive coverage, you can decide if the cost is beneficial for you. Most drivers get comprehensive coverage for new cars, but drivers with older cars often don’t get compressive coverage to save money.

Collision Coverage

Collision insurance protects your car when you’ve been in an accident with another car or object. It helps cover the cost of your car repairs instead of you having to pay out of pocket. When you are looking for auto insurance, you will be able to see each individual part of the insurance package and how much it will cost. You can determine if collision coverage will be a good fit for your needs.

What MAIF Can Do

At The Maryland Auto Insurance Fund, we can work with you to give you the coverage you need. We believe that every driver should have insurance that will work for their budget and their lifestyle. We also offer insurance option for drivers with a bad driving history. We proudly serve customers in and Maryland and the Washington D.C Metro area. Please feel free to contact one of our skilled MAIF insurance specialists to go over your options and get a free quote today!