Factors that will affect insurance cost and basic coverage terms

Demographics

Drivers who live in urban or high crime areas pay higher premiums than those in rural or low crime areas.

Liability coverage

In an accident that is your fault this type of insurance pays the damage to the other vehicle and for any medical claims made by the people in the other car. This coverage is required in most States.

Age

In insurance term the younger less experienced reiver pays much higher rates.

Gender

Males, especially young males, pay higher rates than females

Vehicle choice

More flashy expensive cars will add a lot more to your premium cars with safety features can lower your premium. This can definitely affect your premium.

Claims

People who have multiple accidents who file these will find that they will pay higher premiums.

Driving habits

The number of miles put on a car each year whether you're driving to and from work and the distance between your home and work which is called commuting mileage will be a factor in determining your insurance premium.

Uninsured / underinsured motorist coverage

This covers you and your car if you are involved in an accident with a person who does not have or whose insurance that does not cover all the damage

Premium

This is another word for your monthly insurance payment.

Comprehensive coverage

This pays for damage to your car that happens in ways other than an accident. Theft, vandalism, water damage, and fire would come under this type of coverage.

Collision coverage

This pays for damage to your vehicle. Any cost to repair your car after an accident will be covered under this type of insurance. Your lender will require this if you are financing your car.

Personal injury protection

This pays the medical costs for the policyholder and any passengers.

Broken glass coverage

This provides coverage if your Collision or comprehensive policy does not cover windows.

Gap insurance

This type of insurance will pay for your car's value and what you still owe should you drive it off the lot and destroy it. Once a new car is driven off the lot it is considered used

Deductible

When an insurance claim is filed , this is the amount of money you pay first before the insurance kicks in and pays the remaining costs of the claim.

Traffic tickets

When speeding or running red lights or any other moving violation that puts points on to your driver's license will increase your premium.