Learning Center

The cost of auto insurance can vary widely depending on a number of factors including: the make and model of the car, the amount of insurance required, driving record, and the number of miles driven per year. Additionally, the age of the driver, and where the car will be parked, and the time of day the car will be driven mainly, can all affect the cost of insurance.

A premium is the price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft, and other losses.

The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.

Any retribution you might receive from a claim is given after subtracting the amount of the deductible as dictated by your policy.

Some of the discounts available through Select include the following:

• Multi-car insurance
• Homeowners
• Proof of prior insurance
• Safe driver
• Prior in house coverage

Liability Coverage is the portion of an auto insurance policy that covers injuries and property damage the policyholder causes to someone else. Auto Liability Coverage is required in order to drive in most states. State law usually dictates the minimum required liability coverage, but additional coverage can also be purchased. Remember that it does not provide any coverage for your damages, but only to someone else if you are the responsible party.

Collision Coverage is the portion of an auto insurance policy that covers the damage to the policyholder’s car from a collision. The amount paid to the policyholder is the cost of repairs minus the deductible.

Comprehensive Coverage is the portion of an auto insurance policy that covers the damage to the policyholder’s car from a collision. The amount paid to the policyholder is the cost of repairs minus the deductible.

Medical Payments Coverage is a coverage in which the insurer agrees to reimburse the insured and others up to a certain limit for medical or funeral expenses as a result of bodily injury or death by accident. Payments are without regard to fault.

PIP is the portion of an auto insurance policy that covers the treatment of injuries to the driver and passengers of the policyholder’s car.

Uninsured Motorist is the portion of an auto insurance policy that protects a policyholder from uninsured and hit-and-run drivers. Coverage can be subject to certain limits and deductibles.

An endorsement is a written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions. Sometimes called a rider.