What does the average consumer know about car insurance? Well, they know they need it. In 48 states (excluding Virginia and New Hampshire), it’s mandatory by law when owning or leasing a vehicle. Beyond that, there’s probably a lot regarding auto insurance missing from the average American’s lexicon. Since auto insurance is unique from other forms of insurance, in that you have to worry about liability for total strangers, their vehicles, and other property, it’s beneficial to possess a comprehensive understanding of all the industry terminology. Of course, understanding auto insurance terms is especially important when picking out a policy, as there are a wide variety of options for coverage based on different scenarios and geographical factors.
With two exceptions (New Hampshire and Virginia), every US state mandates drivers to have a minimum requirement of auto insurance coverage. And even in those two exempt states, it’s important to have a policy in place, especially in the case of an accident where you’re found at fault.