Collision insurance Insurance that covers the cost to repair damage to your vehicle resulting from a collision with another car or object. Comprehensive insurance Insurance that covers costs if your car is stolen or damaged in ways that don't involve a collision. The dollar amount you pay per claim toward the total amount of the insured loss. The larger your deductible, the lower your premium. The dollar amount that reflects the decrease in a vehicle's value due to wear or time.
Vehicles often lose the most value during the first couple of years.
Exclusion An insurance policy item that denies coverage under certain circumstances, such as when someone else is driving your car. An auto that costs a lot to repair and is a likely target for thieves. Liability limits The maximum dollar amount for which the insurer is responsible under a given policy. No-fault insurance Losses from an auto accident are paid without regard to who caused the accident in this increasingly popular type of insurance. The amount of money paid for a policy.