How Auto Insurance Works
Drivers pay a premium to keep coverage active. If a covered loss happens, the insurer may pay according to the policy terms after deductibles, limits, and exclusions are applied. Some coverages pay for damage to other people or property, while others protect the insured driver's own vehicle.
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Core Auto Coverage Types
- ✓ Liability coverage helps pay for injuries or property damage the insured driver causes to others.
- ✓ Collision coverage helps pay to repair or replace the insured vehicle after an accident involving another vehicle or object.
- ✓ Comprehensive coverage helps pay for non-collision damage such as theft, fire, hail, vandalism, flood, or animal impact.
- ✓ Uninsured or underinsured motorist coverage may help when the at-fault driver has little or no insurance.
What Affects Price
- ✓ Driving history and claims history.
- ✓ Vehicle type and repair cost.
- ✓ ZIP code and local risk patterns.
- ✓ Coverage limits and deductibles.
- ✓ Miles driven and household driver profile.