Enter Your ZIP Code

Know More About The Different Types Of Motor Vehicle Insurance Policies


Motor vehicle insurance is a type of coverage specifically intended for motorized vehicles such as cars, trucks and motorcycles. This particular type of coverage allows policyholders to file for claims in an event of an auto accident that causes damages that include bodily injury, as well as damages to property and livelihood.

A lot of US states require all car or vehicle owners to have motor vehicle insurance. Non-compliance to such requirements may lead the car owner to pay for heavy fines or may even entail jail time. American car owners should at least have third party liability insurance coverage to shoulder for damages received by third parties in auto accidents.

Motor vehicle insurance coverage may include loss and damage to property and life received by policyholders as well as third parties. Some policies would offer specific coverage against damages such as vandalism, theft, fire or natural calamities such as earthquake, floods and extreme weather conditions.

The rates of auto insurance coverage are determined by several factors including the driver’s gender, age, income, marital status, driving record, and the type of vehicle. Auto insurance companies give higher rates to teenagers and people over 75 years old. Teenage drivers have little or no driving experience. Elderly people on the other hand have a higher risk of getting into traffic accidents due to physical limitations. These are the main reasons why insurers charge them with higher rates.

Women drivers, however, normally get lower rates than men. This is due to the fact that females are perceived to be more cautious drivers and have a lower risk of getting themselves into auto-related accidents. Drivers with a clean driving record have a higher chance of getting discounted rates while rates for single drivers are relatively higher. Owners of luxury or sports cars have to pay more for their coverage, since insurance companies expect to pay more for claims in case these types of cars get damaged or totaled.

Different types of motor vehicle insurance include personal auto insurance, student auto insurance and group auto insurance. Personal auto insurance is intended for private car owners and gives them coverage from damage and liability for both the policyholder and third party involved in an auto accident. Student auto insurance is intended for student drivers. A good number of insurers give discounts to students who get good grades in school. Group auto insurance is intended for both profit and non-profit organizations.

A group auto insurance policy has a wide and extensive coverage and rates are generally very affordable.