If you are new to the automobile insurance world, there are a few terms you may need to learn. As insurance is a primary component to driving, most of us only know that we have to get it -- with or without understanding the lingo that surrounds our policies. And when we try to read through such documents, we become overwhelmed and just figure we can be covered without fully understanding the terms.

If you are at fault in an accident, liability insurance will be what pays for bodily injury and property-damage expenses, caused to third parties in the accident, including legal bills. (Bodily injury expenses include medical bills and lost wages. The things you wrecked will be paid for or replaced by property damage.) Liability coverage is required in most states. An insurance agent may say that your liability-coverage limit is 20/40/10. Decoded, that means you carry $20,000 in bodily injury per person, $40,000 in bodily injury coverage per accident and $10,000 in property-damage coverage per accident.

If you should cause an accident, collision coverage will repair your vehicle. Normally you cannot collect more than the actual cash value of your car. Collision coverage is generally the most expensive component of automobile insurance.

Comprehensive coverage will pay for damages to your car that weren't caused by an auto accident, such as: theft, fire, vandalism, natural disasters or hitting a deer. Keep in mind that your insurer only will pay as much as the car is worth. As a general rule, if your car is worth less than what you're paying for the coverage, you're better off not having it.

Sure, the terms are confusing, but they aren't that difficult to follow after a little research. And when it comes to insurance and terms you are not clear on, ask questions and get the answers... Now was that so difficult?