The following types of coverage are typically included in automobile insurance policies:

• Property Damage Liability – covers property damage caused by your car in an accident.
• Bodily Injury Liability – covers personal injuries and damages caused by you and individuals covered under the policy (read the policy language carefully to determine exactly who is covered). Also covers any legal expenses incurred in defending an action arising from an accident. The policy requires your insurance company to pay for lawyers it chooses to defend you if you face suit as a result of an accident.
• Medical Payments – This type of coverage generally provides “primary” medical coverage for accident related injuries regardless of fault. The coverage is typically “primary” in that it provides coverage before any other policies including health insurance.
• Uninsured/Underinsured Motorist Coverage – This coverage provides benefits to you and occupants of your vehicle for injuries caused from underinsured or uninsured vehicles. This coverage also protects you, even if you are not in your vehicle, from hit-and-run drivers.
• Collision Coverage – This coverage reimburses you, minus your deductable, for damage to your vehicle.
• Comprehensive Coverage – This coverage reimburses you for damage to your vehicle caused by a number of different causes including theft, flood, fire, wind, etc. Your deductable will also apply.

What Affects Automobile Insurance Rates?

Information concerning exactly how automobile insurance companies set their rates is a tightly guarded secret. What is known is that insurance companies consider the following factors in determining rates:

• Accidents – Obviously, prior accidents are one way to gauge future risk. The more accidents, the higher the risk. Even minor accidents can increase you rates.
• Credit Rating – Many people are unaware that poor credit can mean higher insurance rates.
• Age – It is probably not surprising that young males and elderly drivers are most at risk to have an accident. Thus, these age groups pay higher rates. Who said nothing good came with your 25th birthday?
• Gender – Women have fewer accidents than men. Thus, they pay reduced premiums.
• Location – The more densely populated the city you live in, generally speaking the higher insurance rates you will pay.
• Marital Status – Statistics show married people are involved in fewer accidents. Thus, married individuals pay lower rates.
• Traffic Tickets – Most of us know that speeding tickets and other traffic citations raise our insurance rates. The faster you drive, the more likely you are to be involved in an accident. Some insurance companies will not insure people who have had many traffic citations even if they are accident free.

Automobile Accidents
An Overview of the Law
Insurance Issues
Types of Coverage
Uninsured / Underinsured Motorist Coverage
What to do After an Automobile Accident
Frequently Asked Questions