Auto Insurance

You’re at risk every time you get in your car.

It’s important to understand what your coverage options are, not just for your car, but for you, and people who may be injured as a result of your negligence.

Important Auto Insurance Coverage Options

When you look at your policy, you may see certain coverages and wonder exactly what they are. Let us clarify a few of the important ones for you:

• Collision Coverage: This covers damage to your car caused by a fixed or moving object. This includes other cars or curbs.
• Comprehensive Coverage: This covers damage to your car by something that is not a fixed or moving object. For example, theft, a rock that cracks your windshield, an animal you might hit, and so on.
• Property Damage: Suppose you damage someone’s property, such as a car, guardrail, or house. This part of your policy compensates the other person for that damage.
• Bodily Injury Liability: This coverage protects your financial interest in the event you injure another person in an accident. This part of your policy pays the other party for medical bills and related expenses. Due to the high cost of medical care, it’s dangerous to carry liability limits that are too low. This is something we can help you decide on.
• Un-insured & Under-insured Liability: This coverage pays you in the event that you are injured by another party that was either unidentified, or they weren’t carrying a high enough limit of Bodily Injury Liability to cover your expenses.

Common Auto Insurance Rating Variables

• Age: Insurance companies use your age in their overall rating algorithms. Drivers who are under 25, and over 65 typically don’t get preferred rates. This is because they are more at risk for financial loss due to an auto accident.
• Credit: Credit is a metric that has been used in insurance scoring for many years. The better your credit, the more favorable your rates will be.
• Car — The type of car, engine size, safety features, and more are all part of determining the rate.
• Driving History: Your driving record and loss history plays a substantial role in the price. If you have a spotty driving history or multiple moving violations, chances are, you won’t get a preferred rate until 3 years have passed.
• Household: Insurance companies underwrite at the household level, meaning they judge the probability of loss based on the entire household. For example, if there are multiple drivers in the house who are under the age of 25, that will impact everyone’s price.