Auto Insurance Facts
Almost 200 million Americans drive vehicles on public roads, and the thick traffic brings with it the potential for auto accidents. Understanding auto insurance plays a key role in minimizing risk from auto accidents.
Other People Are Reading
-
History
-
Auto insurance developed with the invention of the car in the late 1800s. It was based upon the same philosophy that existed in 3000 B.C., when merchants on China's rivers took measures to minimize risk.
Function
-
Auto insurance protects individuals against property damage and costs related to physical injury. Without auto insurance, some individuals might not be able to pay costs resulting from an auto accident.
-
Types
-
Auto insurance features liability coverage for bodily injury, property damage, medical payments and uninsured motorists. Collision and comprehensive coverages are also sold.
Considerations
-
Many auto insurance companies offer discounts for low mileage drivers, individuals who drive vehicles with airbags installed, drivers who earn good grades in school and older drivers.
Time Frame
-
Most drivers purchase six-month auto insurance policies, but many individuals pay monthly premiums.
Geography
-
Auto insurance rates and laws vary by state. For example, Florida allows no-fault insurance. Premiums tend to be lower in rural communities and higher in large cities.
-
References
Resources
- Photo Credit Shuets Udono/Creative Commons
