Auto Insurance

Understanding the basic components of an automobile insurance policy will help you determine the best coverage for your situation.  

Liability
If you or someone driving your vehicle is at fault in an accident, Bodily Injury Coverage helps pay for someone else’s injuries. Property Damage Coverage helps to pay for physical damages to someone else’s vehicle or property if you or someone driving your vehicle is at fault in a collision.

Physical Damage
Collision Coverage helps pay for physical damages if your vehicle collides with, or is hit by another vehicle or object.

‘Other than Collision Coverage’ helps pay for physical damage to your vehicle caused by non-collision situations such as fire, theft or falling objects.

Uninsured Motorists

If you are hurt by an uninsured motorist, this helps pay for your injuries whether you are in your own car, someone else’s car, or if you’re on a bike or on foot, etc.

Additional Coverage 

These features may not be automatically included in your policy and may be beneficial:

  • Towing expenses
  • Rental car reimbursement
  • Transportation expenses for out of town travel
  • Trip interruption coverage for out of town travel

Factors affecting auto insurance costs

  • Type and age of vehicle
  • Age of the driver
  • Driving record
  • Past insurance claims
  • Location and distance of daily commute
  • Use of the vehicle (business or leisure)
  • Customization and non-factory-installed equipment
  • Amount of coverage
  • Amount of deductible

Reduce the cost of insurance with: 

  • Multiple vehicles insured on the same policy
  • Higher deductibles
  • Anti-lock brakes
  • Airbags
  • Anti-theft system
  • Safe-driver discounts
  • Claims-free discounts
  • A good student discount for high school/college students
  • A senior discount for taking “55 Alive” safe driving school
  • A combined homeowners and auto insurance policy

Increase costs may result from:

  • A high-performance vehicle
  • A youthful drive—age 16 to 25 (especially males)
  • Moving violations or accidents
  • A DUI conviction

Other Considerations:

Lending
Whether you’re in the car or not, your insurance coverage usually follows the vehicle. If you lend your vehicle and an accident occurs, your policy would provide primary coverage for damages or injuries.

Loans & Leases

It’s important to have gap protection to cover you in the event of a totaled vehicle with a replacement value less than the amount still owed on the lease.

Rental Cars
Your personal auto policy’s coverage and limits will apply on any passenger vehicle, and the rental car company’s insurance is usually expensive. However, loss-of-use fees may apply that can be quite costly. Check your policy to ensure coverage when renting a car, especially outside of the United States.

Youthful Drivers
Insurance companies charge more for youthful drivers between ages of 16 and 24 based in accident statistics. Even one speeding ticket can put a youthful driver in a high risk category and insuring a youthful driver will generally cost 50-100% more than for experienced drivers. Good school grades can decrease costs as well as excellent driving behavior.