Auto (car) insurance is a type of insurance coverage for damage to
and resulting from an auto. Insurance of this type can cover a variety
of things depending on the kind of auto insurance that has been
purchased.
All auto insurance policies involve a premium, which is
the payment a customer makes to have auto insurance. Premiums for auto
insurance can be extremely divergent and are determined by a number of
factors. Gender is the major determinant for auto insurance premiums.
Statistically, men are 80% more likely to be involved in an accident,
and therefore have a greater need for insurance. Auto insurance
premiums for men are higher than auto insurance premiums for women.
Similarly, teenagers are considered high risk and will have to pay
higher auto insurance premiums. The auto insurance premium can be
reduced if the teenager takes a defensive driving course. Many states
require teenagers to take defensive driving courses in order to obtain a
driving permit and auto insurance.
It is customary for auto
insurance plans to have a deductible that the customer is responsible
for before the auto insurance provider offers coverage of expenses.
Deductibles can have an effect on the coverage available under an auto
insurance plan.
Auto insurance is slightly different than other
types of insurance because you can purchase auto insurance that covers
specific needs. For this reason there are different kinds of auto
insurance. Auto insurance basics are covered by liability auto
insurance plans. Liability auto insurance is usually the minimum
required by state laws. Liability auto insurance is characterized by a
set dollar amount of coverage for damages resulting from accidents or
negligence. The coverage amount of liability auto insurance can be
applied to property damaged in the accident that is not an auto.
Car
insurance also comes as collision auto insurance. Collision auto
insurance is meant to cover the cost of repairs to a vehicle involved in
an accident, or the cash value of the vehicle if it cannot be repaired.
Comprehensive
auto insurance is also available. With comprehensive auto insurance,
coverage of fees for repairs is provided for accidents that are not
collisions. Comprehensive auto insurance will, for example, cover hail
or fire damage.