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Auto Insurance Factors

Updated on May 10, 2013

Head On Collision

Head on Collision. This is why insurance is important.
Head on Collision. This is why insurance is important. | Source

What auto insurance does is protect you against claims which are very costly in the event of a terrible accident. Your auto insurance may also pay some of the cost of your medical bills as a result of being in an accident. Make sure that you understand the limitations of your insurance policy, especially your auto insurance's limits of liability and rights.

Doing Claims Correctly

During the event of any claim, you must make sure that your auto insurance carrier is notified. You must also contact the police so that statements can be recorded. A camera is always important to keep around so pictures may be taken if you are in an auto accident.

Making Sure to Factor In Crime and Auto Accident Stats

Moving from one place to the next may also affect the cost of your insurance policy. You should take into account that auto insurance premiums decrease with the lessening of auto theft. So living in areas with high crime may make your insurance premiums more costly. In addition to that, in places where auto accidents happen more, your insurance premiums may also be high. Try to find a nice area with low crime and a lesser chance of an auto accident happening.

Making Sure to Include Teens and College Students in Discounts

It is recommended to see if college students or teenagers qualify for auto insurance discounts, if you have any. A safe driver course taken, good grades, and age may be crucial for them for a possible insurance policy discount. Age also plays a role in a possible insurance discount. Good behavior associated with the age of 25, and after, usually decreases auto insurance.

Purchasing Different Types of Insurance

You must decide on buying comprehensive coverage, auto collision, or uninsured auto coverage. If you are leasing a rental or buying a new car, full insurance coverage on your automobile is required. Comprehensive coverage is usually purchased with collision insurance, but may be purchased separately. Comprehensive coverage pays for the theft of your vehicle and even a loss of it during some type of natural disaster. In any accident caused by you, the collision insurance works well. The damages are taken care of through the collision insurance policy. Uninsured coverage is usually applied to situations involving hit-and-runs, damages to property caused by the other driver, an uninsured driver and denied claims made by an insurance company due to low minimum liability requirements. Although the numbers are low for many states involving uninsured drivers, some states can reach 25%.

Place Household Members on Your Insurance

It would not hurt to place everyone within your household on your insurance policy. It is usually assumed that household members, the ones with valid driver's licenses, may indeed drive your vehicle. So when an accident happens, these household members will be covered.


  • Semmens, John. "Improving Road Safety by Privatizing Vehicle and Driver Testing and Licsensing". Street Smart Competition. Entrpreneurship and the Future Roads.
  • Auto Insurance: Road Safety, New Drivers, Risk, Insurance Fraud and Regulation. Huebner International Series on Risk, Insurance and Economic Security. Springer; 1st edition (November 30, 1998). ISBN: 9780792383949


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    • Marquis profile image

      Marquis 5 years ago from Ann Arbor, MI

      Yes, Hubpages is getting like YouTube with the censors.

    • BLACKANDGOLDJACK profile image

      Jack Hazen 5 years ago from Blitzburgh area

      Excellent hub, Marquis. I wrote one entitled "What Should You Do if You Are in an Auto Accident?"

      I'm following the comments on the Vietnam War thread with great interest, and I really appreciate your posts. Right on!

      Unfortunately, I can't post in the forums because I am banned. I explain why in my hub Combat Veteran Banned for Defending "Thanks to God for our patriotic military personnel!"

      This is a strange coincidence. Brenda Durham who posted on your hub and started that "Thanks to God for our patriotic military personnel!" thread is now also banned from the forums.

      God bless, brother.

    • profile image

      Brenda Durham 6 years ago

      Good facts to know, some of those we often overlook or never bother to find out for sure in the first place. Good hub: thank you Marquis.