Automobile Insurance You Can Count On…One Hand

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How Much Is Auto Insurance

Introduction

Auto insurance is not only the most widely purchased type of property and liability insurance, but also one of the most important because of the bodily and property damage that can result from accidents. Since the driver of a car is legally liable for the damage caused by their vehicles, they need insurance to protect them against financial loss in case of an accident—or in case of theft, vandalism or “acts of God” such as storms.

The costs of auto insurance depend on many factors. These include the age of the policy holder as well as the particular type of insurance purchased. The five main types of coverage are:

    1. liability—for when the holder’s car causes damage
    2. collision and comprehensive coverage—pays for damage to the policy holder’s car, or if it hits another object
    3. uninsured motorists—covers drivers judged to be responsible for car accidents but who have no liability insurance, as well as holders and their families if they are hit by an uninsured driver
    4. medical payments—pays for the holders’ and their families’ medical expenses, regardless of whether they are at fault or not
    5. no-fault—provided in about twelve states and four Canadian provinces; pays automatically from the holder’s insurance company, regardless of who caused the accident

The Age Of The Holder

This is a particularly crucial factor in determining the cost of auto insurance. For those who are sixteen or seventeen—and have thus just received their licenses—the rates are going to be understandably high, typically from $300 to $500 per month. They tend to drop as the driver gains in experience to between $150 and $350 at 20, and even less at 25. However, one’s driving experience is also a deciding factor, so that, say, a driver of 35 who has just received his license will have to pay higher premiums than one of the same age who has been driving since age 16. For this reason, parents of teenage drivers should really weigh the pros and cons—all of them—before deciding to include them on their auto insurance policies.

It is possible to arrange for a teenage driver to pay lower premiums. If they have no accidents for a specified number of years, most insurance companies will give them “safe discounts.” “Good student” discounts of 25 percent are also available for those taking driver training who show themselves to be “academically inclined.”

The Type Of Car

What make of car the insured owns also determines insurance levels. Those that, owing to their design, are deemed more likely to be involved in accidents—such as convertibles or sports cars—are naturally much more expensive to insure than other vehicles. Besides, there is much that can be known about people from the types of cars they drive.

What Information Is Typically Asked For In Insurance Quotes

Almost all websites that give insurance quotes ask the visitor to provide the following information (the model being used here is Progressive Auto Insurance):

    • ZIP code
    • type of vehicle—Choices include auto, motor boat, travel trailer, motor home and commercial auto.
    • full name
    • mailing address
    • date of birth

With all of this information being given, all vehicles that are registered to that person are listed, along with their photographs. The visitor may also enter a vehicle other than those that are listed. The next things asked for are the primary purposes for which the vehicle is used (personal, business, pleasure or farming), whether he owns or leases it and whether it is equipped with an anti-theft device. Then various other information has to be filled in, including employment status, year licensed, SSN and whether the driver has been involved in a fault accident in the past five years or a no fault accident in the past three years. On the website of an insurance company, licensed representatives may be chatted with.