Auto Insurance - Insurance coverage for your automobile has six basic coverage options:

Bodily injury liability, for injuries you cause to someone else
Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of your car
Property damage liability, for damage you cause to someone else’s property
Collision, for damage to your car from a collision
Comprehensive, for damage to your car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft
Uninsured and underinsured motorists coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance

Auto Insurance Premium - The price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft and other losses. Prices vary from company to company, as with any product or service.

Premiums also vary depending on the amount and type of coverage purchased; the make and model of the car; and the insured’s driving record, years of driving and the number of miles the car is driven per year. Other factors taken into account include the driver’s age and gender, where the car is most likely to be driven and the times of day – rush hour in an urban neighborhood or leisure-time driving in rural areas, for example. Some insurance companies may also use credit history-related information.

Auto Insurance Score - Insurance scores are confidential rankings based on credit information. This includes whether the consumer has made timely payments on loans, the number of open credit card accounts and whether a bankruptcy filing has been made. An insurance score is a measure of how well consumers manage their financial affairs, not of their financial assets. It does not include information about income or race.

Studies have shown that people who manage their money well tend also to manage their most important asset, their home, well. And people who manage their money responsibly also tend to handle driving a car responsibly. Some insurance companies use insurance scores as an insurance underwriting and rating tool.