Auto Insurance
Almost all states require that you carry some auto insurance, and most have set minimal amounts of liability coverage that must be carried. Auto Insurance protects you financially from damage to your own car and to damage to others and their property that you may cause. It usually covers the following:
- Bodily injuries to yourself or others
- Lost wages due to injury
- Benefits to survivors when an accident results in death
- Lawsuits brought against you as the result of an accident
- Repairs made to your car due to damage caused in an accident.
Insurance packages vary widely, and many options are available. Some of the possible coverages are listed below:
- Bodily Injury Liability - Covers medical costs, loss of income, and the cost of your legal costs (if sued) if you injure someone while driving
- Property Damage Liability - Covers damage to someone else’s property and your legal costs (if sued) if you caused the damage while driving
- Collision - Pays for damage to your car caused by an accident
- Comprehensive (Other than collision) - Covers damage to your car caused by perils such as theft, vandalism, fire, and hail
- Medical Payments/PIP - Covers the cost of medical care, lost wages, replacement services and funeral expenses for you and/or your passengers if injured in the car
- Uninsured/Underinsured Motorist Protection - Covers expenses to you for your car or persons injured in an accident and in which the other driver has no insurance or your expenses are not adequately covered by an underinsured driver.
How are Auto Insurance Rates Determined?
Many factors are taken into consideration when setting auto insurance rates, including the following:
- Driving Record - Accidents that were your fault and tickets will both increase premiums
- Other Licensed Drivers in Your Home - having a teen will increase your rate
- Car - more expensive cars and sports cars will raise premiums
- Marital Status - married drivers statistically have fewer accidents which results in lower rates
- Location - People in larger cities or in areas where there are more accidents usually have higher rates
- Age - Rates are higher for people under 25 because they have more accidents, and rates are lower for people between the ages of 50 and 65 because they have less accidents
- Gender - Men are in more accidents than women and, therefore, usually have higher rates
SEE ALSO:
- Insurance.PreferredConsumer.com - Auto Insurance
