What Do You Get? “Full Coverage” policies usually cover the following:

• Property Damage Liability:
  Pays damages caused by your car to other people’s property, within the limits set by the policy.
• Bodily Injury Liability:
  Pays those injured by your car, up to the limits set by the policy.
• Medical Payments:
  Pays the medical bills of you and usually your passengers, within the limits of the policy, if injured while riding in,  or getting in or out of the car.
• Collision:
  Pays for repair of damage to your car caused by collision. A deductible is paid out of pocket.
• Comprehensive:
  Pays for damages to your car caused by incidents, other than colissions. This includes  theft, fire, a hail storms, falling trees and broken windows. A deductible may involved.
• Other:
  Conveniences such as towing and car rental may also be covered by the policy.

Auto Damages/Injuries caused by Uninsured Motorists

Most state’s liability policies will include uninsured and under-insured motorist’s coverage unless you specifically reject it. The exact values vary state to state, typical liability limits are:

• Uninsured Motorists: Bodily Injury: $25,000/$50,000
• Property Damage: $10,000
• Bodily Injury for under-insured Motorists: $50,000

These Damages your own insurance company in place the uninsured and under-insured driver absent coverage.

Minimum Liability

Most states require drivers to carry at minimum, coverage for damage of other persons and property. (New Hampshire is a rare exception) Penalties for being an uninsured driver, as described above can be severe. North Carolina will issue a driver’s license only when the applicant has a policy in hand.  Liability policies essentially are stripped down versions with all protections of your own person and property removed.

SR-21 or Certificate of Compliance

An SR-21 or a Certificate of Compliance is an additional form that the court requires your auto  insurance agent to process for a period following an accident or a traffic violation. Filing this form proves your financial responsibility. The usual form of financial responsibility is your auto liability policy.

Factors that effect the price of your insurance policy

• Age:
  Teenage drivers having no driving record and limited experience will pay higher car insurance premiums. Some insurers offer a discount to teens who receive supplemental driving training or have good academic record. Usually a driver reaches full adulthood and is entitled to standard prices in the eyes of insurers at the age of 25.
• Gender:
  Women generally are less aggressive drivers, this trait is rewarded by insurers in the form of lower premiums.
• Marital Status:
  Married people are judged to be more stable, and entitled to lower rates.
• Type of Vehicle:
  Sports cars, high powered SUVs and motorcycles will generally cost more to insure, insurers may use the number of engine cylinders as a price setting factor. Motorcycles tend to cause to their own operator and less to others, which can reduce their liability coverage cost.
• Mileage:
  The number of miles driven in a year is taken into account, this might be derived from a distance to work figure entered in the application. Some newer regulations allow more significant discounts for exactly measured mileage reductions, confirmed by a second party.
• Credit Rating:  Yes, insurance companies also use your credit rating as a gauge of your character and stability.