While age is not the only factor in determining your auto insurance rates, your demographics also play an important role. Insurers use statistics to determine which categories of people are more likely to have an accident and will charge you more money for auto insurance. These factors include your age and gender. While insurance companies cannot use racial, ethnic, or religious groups as determining factors, they can use the statistics to determine whether you are a good risk for them.
Underinsured motorist coverage can save you money on repairs and other expenses caused by a third-party. Underinsured motorist coverage comes into play if you have been involved in a hit-and-run accident. It is important to note that some states do not have mandatory liability insurance requirements, so your insurance company may require you to purchase underinsured motorist coverage as well. If this is the case, consider getting underinsured motorist coverage to protect yourself.
Collision coverage pays for damage to your car if you’re at fault in an accident. Although collision coverage will not reimburse you for damages caused by normal wear and tear or mechanical failure, it will compensate you for damage caused by potholes and rolling your vehicle. The cost of a serious accident can be very high, so it’s important to get enough coverage to cover your vehicle’s value. In many states, collision coverage is required by law.