Learning the language may not guarantee that you understand everything that your agent may discuss, but it will help you ask the right questions so that you can begin to understand. Educating yourself in financial matters (and the terms used in the situations) is one of the best ways to stay in control.



Liability Coverage ? this is usually the very least required by states for motorists. It only covers any monetary obligations that you may have stemming from an accident.

Uninsured Motorists Coverage ? this will cover most expenses that you incur from situations where the accident is caused by someone who has no insurance.

Exclusions ? this is the part of your insurance policy that explicitly spells out all the things that are NOT covered.

Full Coverage Car Insurance ? This is typically a term used to refer to a policy that covers more than liability. It is not technically a ?full coverage? policy.

Collision Coverage ? this covers expenses when you have a collision with another car or with some other object (or they have a collision with you).

Deductible ? the out of pocket payment you will have to make when filing a claim. Typically the higher the deductible is then the lower the monthly premiums.

The good news is that these are some of the terms that you are most likely to encounter when shopping for car insurance. The bad news is that there are still plenty more that you might want to research in order to truly be aware of what you are getting into.