Auto Insurance

Brooke VanSickle

What is auto insurance?

This is where you buy a premium policy and the insurance company promises to pay for any financial loses to your car during the policy.
Allstate mayhem commercial - Dean Winters as Teenage Girl in Pink Truck

Why do you need auto insurance?

Driving without insurance is ilegal. There are some things that you can not afford to risk. If you're in a crash that causes property damage, you hurt yourself or someone else, weather damages your car, your car is vandalized, or stolen, you could not afford to pay it without insurance.

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Auto Insurance Risks

When you sign up for auto insurance, they screen you to decide if you are a risk to the insurance company. If you are a low risk to the company, you will have to pay a lower premium. If you are a high risk, you will have to pay a higher premium. In this screening process, they look at your age, gender, vehicle type, driving record, and where you live. All of these factors affect how much of a risk you are to the company. If you are older, you have more experience and looked at as less of a risk than a teenager who just started driving. To lower your premium, always use your seatbelt, concentrate on driving, get good grades, and be patient because it will lower in time.
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Things to Remember

1) A deductible is the amount per accident that the driver must pay. When you have low premiums, your deductible is higher.

2) Don't just compare price to price when looking at companies because they usually offer different policies.