The Basics of Auto Insurance

What factors influence the cost of auto insurance?

First of all, the kind of car you drive will influence your insurance costs. A high-performance sports car will be more expensive. Other factors that will affect cost include your age, marital status, where you live and how you use your car (business or pleasure).

What factors can reduce auto insurance costs?

Cars that have safety features such as antitheft devices, air bags and anti-lock brakes may have a lower cost. A higher deductible can reduce your premiums. A driver with a safe driving record and no accidents will have a lower cost.

What are some of the coverages available in an auto insurance policy?

Bodily injury liability: In case you cause an accident in which someone else is hurt or killed.
Property damage liability: If you damage someone else's property.
Collision: When your car is damaged as a result of colliding with another car or object.
Comprehensive: If your car is stolen or damaged in ways that don't involve a collision.
Medical payments: Pays the doctor bills, hospital bills or funeral expenses for injuries that occur to you or members of your family that live with you, no matter who caused the accident.
Uninsured motorist: Pays for your injuries when you're hit by a driver who has no insurance.

When do I need to update my policy?

Update your policy when you move, marry, change jobs or no longer insure a young driver.

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