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Car insurance, explained for people who've never bought it before

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Plain-English glossary

Claim

A request to your insurer to pay for a covered loss.

Collision

Pays to repair your own car after a crash, no matter who's at fault.

Comprehensive

Covers non-crash damage: theft, weather, vandalism, hitting an animal.

Coverage limit

The most your policy will pay for a covered claim.

Deductible

What you pay out of pocket on a claim before insurance covers the rest.

Full coverage

Informal term for liability plus collision and comprehensive.

Gap insurance

Covers the difference between what you owe and the car's value if it's totaled.

Liability coverage

Pays for injury or damage you cause to others. Required in most states.

Premium

The amount you pay for your policy — usually monthly or every six months.

SR-22

A form proving you carry the state-required minimum coverage.

Underwriting

How insurers assess your risk to set your price.

Uninsured motorist

Protects you if you're hit by a driver who has no insurance.

Showing 12 of 60+ terms · view the full glossary →

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First-policy checklist

Tick these off before you request a quote. Your progress is saved as you go — check an item to mark it done.

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Advertising & editorial disclosure. Mile Zero is an independent educational resource supported by advertising and, in some cases, affiliate links. This never influences our guidance. Content is informational only — not financial, legal, or insurance advice. Requirements and prices vary by state; always confirm details with a licensed agent before making a decision.