So what Auto Insurance Coverages are there?
If you’re wondering what your policy covers, then you’ve come to the right place! Let’s talk about some important Auto Insurance coverages.
So what is Collision Coverage?
If you hit an object or the car flips over, then Collision coverage pays for it. For example, you could damage your in an accident with another car, a sign, etc.
So what is Comprehensive Coverage?
If your car sustains damage and it isn’t a collision, then Comprehensive coverage pays for it. For example, it covers theft. It could pay when a rock cracks the windshield while you’re driving, if you hit an animal, etc.
So what is Property Damage?
If you damage someone else’s property in an accident, then Property Damage coverage pays for it. For example, it might be another car, a guard rail, or a house.
So what is Bodily Injury Liability?
If you injure another person in an accident, this coverage pays for it. In fact, the coverage pays for the other person’s medical bills and related expenses. Because medical care is expensive, it’s dangerous to carry liability coverage that’s too low.
So what is Uninsured and Underinsured Liability?
If you’re injured by an unknown party, then this coverage pays for it. It also pays when someone causes an accident, but doesn’t have enough insurance to cover your expenses. Because you have no control over how much insurance other people have, this coverage is very important.
So what determines the cost of Auto Insurance?
To be sure, there are many factors determine what you pay. In addition to the Auto Insurance coverages you choose, your rates are also based on:
Age
Generally, drivers under 25 and over 65 have the most accidents. Therefore, there is a greater risk of financial loss.
Credit
If you think that credit isn’t a factor, then think again. In fact, credit has been a factor for many years. In general, the better your credit, the better your rates.
Driving History
Of course, your driving record and loss history play a huge role in the price. If you have tickets or accidents in the last 3-5 years, then your rates will be higher. Likewise, if you have a spotty driving history, then you can expect to pay more.
Household
It must be remembered that insurers judge the odds of a loss based on your entire household. For example, if there are several drivers under the age of 25, everyone in the household is impacted.
The Car
Finally, the type of car, engine size, safety features, etc. all factor into your rate.
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