123-Insurance

What is Auto Insurance?

Auto insurance covers three things:

• the insured person
• the insured vehicle
• other vehicles and people

All insurance is based on risk factors. For auto insurance, if the insurance company considers you as a high risk to be in an accident or to file a claim, then you will pay more than someone else who the company considers has a lower risk of an accident or who might file fewer claims.

Some states require proof of car insurance before issuing a drivers license.

How much you pay for auto insurance (called your premium) depends on on many factors, including your age, driving record, where you live, how much you drive your car, and what type of car you drive. In general,

• Younger drivers will pay more than older drivers because more experienced drivers tend to have fewer accidents.
• Drivers with more accidents and moving violations (like speeding tickets) will pay more than drivers with fewer accidents and tickets.
• Drivers in high accident areas or states will pay more than drivers in areas where accidents occur less frequently.
• Drivers with long daily commutes will pay more than drivers who drive their cars for short distances a few times a week.
• Owners of sports cars, muscle cars, some SUVs (sport utility vehicles) will pay more than owners of sedans and luxury cars with higher safety ratings. Because they tend to be more sporty, a two door car will carry a higher premium than than a 4 door car.

Click here to start your free Auto Insurance quote.

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