For new car insurance, you shop around and get several quotes. There’s a host of information to sift through, and some of it may be unclear. Whether you’re a newly licensed driver or just need a refresher course, you can make sense of all the details. Here is a helpful guide on how to break down an auto insurance quote to ensure you’re making the best coverage decision.

The Details

Most quotes will provide you with the information used to determine an estimate on what you may pay for auto insurance. This includes the type of coverage, such as collision and comprehensive or the state-required property and liability minimums.

The quote will typically list the cost, which is also known as the premium. Also included is the deductible, or the amount you pay out of pocket before any insurance kicks in for repair or replacement costs or medical treatment for injuries. 

The Declaration Page

On this page, you’ll find personal information about you and your vehicle. In addition to your name, address, and birth date, the declaration page will typically include your vehicle’s year, make and model, and vehicle identification number or VIN. If other drivers will be insured, their information will be listed too. 

Another important component on the auto insurance quote’s declaration page is a set of three numbers. This trio shows the dollar amount of your coverage. For example, if it reads 25/125/50, it means the following: 25 is for $25,000 for the maximum amount the insurance provider pays for each person injured in a car accident.

The 125 would be $125,000 for the total amount available for all injured people. The 50 is for $50,000 as the maximum amount that will be paid for vehicle or property damage.  

The Common Auto Insurance Terms

You will also see some common terms that highlight certain aspects of your auto insurance coverage. As previously mentioned, the deductible is included. The premium is the estimated amount you’ll pay each month or annually. You may also see the words “actual cash value” (ACV) on your insurance quotes.

If your car is totaled in an accident, the ACV is the amount the insurance provider pays you for your vehicle’s appraised market value. The replacement cost value (RCV) is reimbursement for the cost of your vehicle when you purchased it new. 

These are some of the main parts of a standard auto insurance quote. The friendly and professional team at Charles Adams Insurance Agency in Ashland, KY, will gladly take the time to walk you through the fine details. As an independent firm, they work with several leading insurance carriers so that you can compare multiple quotes. New and established drivers are welcomed to call (606) 325-9709 to shop for coverage. You can also request a quote online.