Auto Insurance

Auto Insurance Policies in the United States

Anyone who has ever suffered a car accident knows the importance of car insurance when it comes to coverage of losses and personal injuries. Auto insurance is a contractual agreement between an insurance provider and the policyholder. It requires the insured to pay the monthly premiums while the insurance company covers the losses in case of an accident. The laws and requirements may vary from one state to another, although every driver should hold the minimum basic coverage before operating a vehicle on the roads.

Policies Covered

A basic car insurance policy comprises of six different types of coverage including the personal injury protection, the bodily injury liability, the comprehensive cover, collision, property damage liability and the underinsured/uninsured coverage. Policyholders may include other additional plans to basic policy to ensure complete protection in case of an accident.

Factors that determine the Premium Rates

The insurance premiums vary from one car and driver to the other depending on many factors. They include:

Age and gender- the insurance companies charge higher premiums to teenagers and young adults under 30 years of age who are most likely to cause accidents. Additionally, women are careful drivers than men, which may lead to lower rates.

The model of the car- some car models are more expensive than others meaning that their repair or replacement costs are also higher.

The marital status- statistics show that single drivers cause more accidents than married couples hence the higher premiums rates. You may need to indicate your marital status to enjoy the lower costs.

Other factors may include the credit score, the vehicle’s safety rating, previous driving record, as well as size and age of the car. Policyholders also get to enjoy various car insurance discounts such as a safe driving course, occupational discounts, good students and low mileage discounts among others.


Accidents are inevitable and acquiring auto insurance cover protects you from the daily stressors of dealing with losses from an accident. There are plenty of insurance providers online, so getting one should not be a problem. Remember to read and understand every clause on a policy before acquiring it.