So when you come in to our Rapid City or Spearfish offices to talk about car insurance, it might save you some frustration if you are up-to-date on some of the most common terms specific to car and auto insurance.
Liability – You’re not driving your house around with the chance of bumping into other houses. But when you drive your car around, there’s as much chance that you’ll be found at fault for a wreck as the other guy will be. Liability insurance is there to cover damages caused by you to someone else’s property, and to help cover medical bills, and it’s required in South Dakota. You’ll need $25,000 coverage for property damage, $25,000 for bodily injury or death per person, and $50,000 for bodily injury or death to multiple people. Of course, these are minimum numbers, and you might want better coverage. Liability only covers the other person’s vehicle if you’re at fault.
Collision coverage: Collision coverage is more expensive than liability, but you are not required to have it. It covers your car in the event of an accident, even if you’re at fault. There may be exclusions, so make sure to talk to you local insurance agent.
Comprehensive: Comprehensive car insurance cover the vehicle from non-collision damage, such as fire, theft, vandalism, flood, and falling limbs.
These are the top three terms that you’ll need to know when talking about car insurance. It’s a great jumping off point to understanding your insurance even more. Want to know more? Stop by or give us a call today!