Auto (car) Insurance is a kind of insurance coverage for damages to automoblies. Insurance of this type can cover a wide range of areas depending on the kind of Auto Insurance that has been purchased.

All auto insurance policies involve a premium, which is the regular payments a customer will make to have auto insurance. Premiums for auto insurance are determined by a number of factors.

Research has shown that Gender is one of the major factors for auto insurance premiums. Statistically, men are 80% more likely to be involved in an accident, and therefore have a greater need for insurance. Auto insurance premiums for men are higher than auto insurance premiums for women. In the same manner, young people are considered high risk and will have to pay higher auto insurance premiums. The auto insurance premium can be reduced if the teenager takes a defensive driving course.

Auto insurance is quite different than other types of insurance because you can purchase auto insurance that covers specific needs. For this reason there are different kinds of auto insurance. Auto insurance basics are covered by liability auto insurance plans. Liability auto insurance is usually the minimum required by state laws. Liability auto insurance is characterized by a set dollar amount of coverage for damages resulting from accidents or negligence. The coverage amount of liability auto insurance can be applied to property damaged in the accident that is not an auto.

Car insurance also comes as collision auto insurance. Collision auto insurance is meant to cover the cost of repairs to a vehicle involved in an accident, or the current cash value of the vehicle if it cannot be repaired.

Comprehensive auto insurance is also available. With comprehensive auto insurance, coverage of fees for repairs is provided for accidents that are not collisions. Comprehensive auto insurance will, for example, cover fire damage.

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