An auto insurance policy has a lot of legal words that most of us do not begin to understand.  The essential parts of the auto policy are found in the declarations page that you receive when your policy renews.  Auto insurers are always competing for each others policyholders and by comparing quotes you can get great rates.  Every auto insurance company uses underwriters and actuaries to help determine your rate.

 

Rating Territory – Your neighbors and acquaintances in your region help determine the rates in your area.  These areas are called rating territories by the insurance companies.  If there are high losses and incidence in your area then your rates are going to be higher.  If low the opposite is also true.

 

Liability Auto Insurance – Liability protects you when you are liable in an automobile accident.  Auto liability insurance is valuable protection and insures you against the highest risk and financial loss.  Liability claims are by far the largest for death. Do not under-size your auto insurance policy in this area.

 

Collision Auto Insurance – This portion of the auto insurance policy pertains to your coverage of damage to your automobile in an collision. Purchase this coverage with high deductibles to keep your rates low. Lower deductibles do not More >