Car Insurance
These days, finding the right car insurance is simple because the team at Southern Eagle Insurance offers flexible options that are easy to understand. We can help you find coverage that’s designed to meet your needs at affordable rates.
But before you choose your car insurance policy, it’s important to understand what each type of coverage offers and the many factors that can have an impact on how much you’ll end up paying for auto insurance and why.
What Are the Different Types
Of Car Insurance Coverage?
Car insurance includes several different coverages that are designed to protect a driver if they’re involved in a motor vehicle collision or if their car is damaged. Some types of auto insurance are required by the state the driver resides in while others are optional and provide additional protection.
The common types of auto insurance available include:
Liability
In most states, liability coverage is mandatory. A driver is legally required to purchase the minimum amount of liability insurance set by law. Liability insurance includes two components, bodily injury and property damage.
Uninsured and Underinsured Motorist Coverage
If a driver is hit by a motorist who is underinsured or uninsured, this coverage can help pay for the cost of medical bills, and repairs to a vehicle, in some states.
Comprehensive Coverage
This insurance can cover vehicle damage that is caused by vandalism, fire, or inclement weather.
Collision Coverage
If a driver is involved in an accident with another car or if they were hit with an object, collision coverage can help cover the cost to repair or replace the vehicle.
Medical Payment Coverage
If the driver, their passenger, or a family member who was driving the insured car sustains injuries in an accident, medical payment coverage can help cover the costs that are associated with the injuries.
Personal Injury Protection (PIP)
PIP coverage is not available in every state. In states where coverage is available, it can help the driver or a family member that resides in the driver’s household, pay for medical treatment and lost wages, in addition to other necessary costs.
What Factors Affect Car Insurance Rates?
Auto insurance doesn’t cost the same for every driver. Several factors can affect auto insurance rates, such as the details about the vehicle or the driver’s personal information.
Factors that can affect car insurance rates include:
Vehicle Make Model
Additionally, vehicles such as sports cars are also more expensive to insure because they are associated with racing, making them more expensive to insure compared to vehicles such as minivans.
Age
This is because younger or much older drivers have a higher perceived risk of being involved in a collision.
Location
Where a driver lives can affect their auto insurance rates. Drivers who reside in more rural areas can expect to pay a lower rate compared to drivers who live in urban areas.
Driving Record
A clean driving record that’s free of accidents and
citations can save the driver big on car insurance.
Drivers can be awarded discounts that are designed to encourage safe driving habits.
Credit History
In most states, a driver’s credit history can also determine auto insurance premiums. A driver with a lower credit score is more of a risk to insure, compared to a driver with a high credit score.
Claims History
A driver with a long claims history can be faced with steep insurance rates. Regardless of whether or not the driver was at fault for the accident, even a single claim can cause a driver’s rate to go up.
Vehicle Make
& Model
Typically, newer vehicles and higher priced vehicles will cost more to insure compared to older models with more miles.
Age
How old a vehicle is can also affect auto insurance premiums, especially if the driver is over the age of 75 or under the age of 25
This is because younger or much older drivers have a higher perceived risk of being involved in a collision.
Location
Where a driver lives can affect their auto insurance rates. Drivers who reside in more rural areas can expect to pay a lower rate compared to drivers who live in urban areas.
Driving Record
A clean driving record that’s free of accidents and citations can save the driver big on car insurance.
Drivers can be awarded discounts that are designed to encourage safe driving habits.
Credit History
In most states, a driver’s credit history can also determine auto insurance premiums. A driver with a lower credit score is more of a risk to insure, compared to a driver with a high credit score.
Claims History
A driver with a long claims history can be faced with steep insurance rates. Regardless of whether or not the driver was at fault for the accident, even a single claim can cause a driver’s rate to go up.
