When shopping for auto insurance, the easy part may be getting several rate quotes from different companies. What can be more of a challenge is figuring out what all those details you received actually means. To help make an informed decision about what type of coverage to go with requires doing a bit of homework first. The following guide highlights how to read and understand an auto insurance quote.

How to Interpret an Auto Insurance Quote

Rates & Coverage Amounts

As you do side-by-side comparisons of each quote, you’ll notice some similar terms. One is the premium, which is the estimated amount you’ll pay monthly or annually for coverage. Another key figure is the total amount of auto insurance available. This figure will vary based on the top of coverage. For example, collision and comprehensive may have higher coverage amounts than state-required liability insurance. The deductible is also included. This is the amount you’ll pay out of pocket before the insurance provider pays for repair or replacement costs and medical treatment for injuries. 

Personal Information

Auto insurance providers review several factors when putting together quotes. Personal information, such as your birth date; gender; and vehicle’s year, make, model, and identification number, will be listed on the declaration page. If other drivers will be insured, their information will be listed too. 

Coverage Breakdowns

Whether you’re purchasing auto or motorcycle insurance, you’ll also notice a set of three numbers, which are typically listed on the declaration page. This is the dollar amount of maximum coverage available to you. For example, if you see 20/150/75, it means $20,000 is the most an insurance provider will pay for each person injured in a vehicle accident. The 150 is $150,000, which is the total for all injured individuals. Finally, 75 is $75,000 for the maximum amount paid for vehicle or property damage. 

Armed with this information, you’ll be able to read an auto insurance quote and go with a policy that fits your unique needs. For nearly 50 years, MP Davis Insurance Agency in Randleman, NC, has helped clients demystify coverage rates and terms. The team of licensed and friendly agents will gladly walk you through the process so that you’re comfortable with your auto insurance choice. As an independent agency serving the Piedmont Triad area, the firm works with some of the nation’s leading providers. For free, no-obligation insurance quotes, call (336) 498-7606. You can also find the complete lineup of coverage options online.