Auto Insurance

When you browse through your policy, you may see certain coverages and wonder exactly what they are, and why they’re on your policy. Let us clarify a few of the more important ones for you. Collision Coverage — this is the part of your policy that covers your car in the event you damage the car itself somehow, as a result of an accident with a fixed or moving object like another car, a curb, a house, a guardrail, etc.. Comprehensive Coverage — this coverage also protects your car, but in the event that something else damages your car, that is not a fixed, or moving object. For example, theft, a rock that cracks your windshield while you’re driving on the highway, an animal you might hit, and so on. Property Damage — suppose you damage someone’s car in an accident, or a guardrail, house, or some other property that belongs to someone else. This is the part of your policy that compensates the other person for that damage. Bodily Injury Liability — this coverage protects your financial interest in the event you injure another party in an accident. This is the part of your policy that pays that other party for their 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, and that other party was either unidentified, or they weren’t carrying a high enough limit of Bodily Injury Liability to cover your expenses. This is also a very important part of your auto policy because you have zero control over how much insurance other people are driving around with.

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 because statistics show that those two age demographics have the most loss frequency and are therefore 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 usually be. Car — the type of car, engine size, safety features, etc.. are all par of the rate of course. 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 or accidents, chances are, you won’t get a preferred rate until those things are at least 3 years old. Household — insurance companies underwrite at the household level, meaning they try to judge based on the entire household, what the probability of loss will be. If there are multiple drivers in the house who are under the age of 25, that will impact everyone’s pricing in the household