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Bodily injury liability coverage generally pays damages for bodily injuries to the driver and passengers of the other vehicle when you are responsible for an accident. It also provides coverage to defend you if you are sued because of an auto accident.
Property damage liability coverage generally pays for damages to another person’s property (e.g. their car) when you are responsible for an accident. It also provides coverage to defend you if you are sued because of an auto accident.
Medical payments coverage generally covers you, household relatives and your passengers for medical expenses that result from injuries sustained in an auto accident. It also covers you as a pedestrian if you are hit by a vehicle.
Some states have personal injury protection (PIP) in place of, or in addition to, medical payments coverage. This is also known as no-fault coverage. PIP can generally pay for medical expenses, funeral expenses, loss of income and other expenses for injuries or death due to bodily injury sustained as the result of a car accident.
Uninsured or underinsured motorist bodily injury coverage generally pays for damages for bodily injury to you and your passengers when caused by another in an auto accident and the person legally responsible either has inadequate or no insurance. This coverage varies greatly by state. In some states it may be a combined coverage, while other states may offer it as two separate coverages (e.g. one for uninsured motorists and one for underinsured motorists).
Collision coverage generally pays for damage to your car if it hits another car, object, or overturns. A deductible applies to this coverage.
Comprehensive coverage generally pays for damage to your car if it is stolen or damaged by certain causes other than collision, such as fire, theft, hail or vandalism. A deductible applies to this coverage.
1. Credit Score 2. Type of Coverage 3. What You Drive 4. How Often, and How Far You Drive 5. Where You Live or Garage the Vehicle 6. Your Driving Record 7. Your AGe, Sex, and Marital Status 8. If You Have Multiple Policies
How Traffic Tickets Affect Car Insurance Rates:
When car insurance companies determine your premiums, one of the biggest factors they look at is your history of traffic tickets. Statistically, when you have a driving record that shows more moving violations and speeding tickets, your insurance company views you as more likely to get into an accident and cost the car insurance company money.
You cannot predict exactly how much you car insurance will go up after a ticket, but your rates are likely to increase with a higher number of traffic tickets and more severe violations.”
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“Some drivers hesitate to file a claim with their car insurance company unless absolutely necessary because they fear that their rates will automatically increase.
This is not always the case. Whether your car insurance rates go up and by how much depends on your car insurance company, the circumstances of the incident, and whether you have accident forgiveness on your policy. Although you cannot know for sure how filing a claim will affect your auto insurance rates, the following information may help you predict the effects somewhat.”
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Some companies will still increase your premium because you’re statistically more likely to get into another accident, posing more risk to your company.
If you live in a no-fault state, both insurance companies pay for some of the costs, and your rates will likely rise no matter who caused the collision.
If you have a long history of safe driving and you have been with the company for a long time, you are may see less dramatic hikes in your premium than someone with a poor driving record.
Some companies also offer accident forgiveness for good drivers. This means your first accident would not result in rate hikes.
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