When purchasing vehicle insurance, there are several choices. Some of the choices will depend on facts outside of the control of the driver. One of these facts concerns the age of the driver. Some insurance providers refuse to insure a vehicle if it will be driven by anyone under a certain age, or over a certain age. Another factor is the number of accidents or traffic citations within the last five years.

Insurance companies try to limit their risk of paying a claim by only insuring those over 25 and under 65 who have none or very little reason to file a claim. That is, no accidents of any kind, or only a small claim for windshield replacement, for example. For a higher fee, some insurance companies will insure older drivers or those with less than stellar driving records.

In most cases, if a vehicle has a lien (loan) against it, the driver will be compelled to purchase full coverage auto insurance. Full coverage consists of collision, health, liability, comprehensive (glass, fire, etc) and uninsured motorist coverage. It may also include road service. A minimum deductible, the dollar amount the driver would have to pay out of pocket for each claim, is set by the insurance company. The driver may have the choice of raising this amount which usually means that the premium will be a bit lower.

• Collision pays for damages to the vehicle in the event of an accident.
• Health pays for medical treatment for the driver and passengers if injured in an
accident while in the insured vehicle.
• Liability pays for damages to property, such as a utility pole, mailbox, etc.
• Comprehensive coverage pays for broken windshields, electrical fires, etc. to the insured
vehicle.
• Uninsured motorist coverage will pay for damage to the insured vehicle in the event of an
accident involving another vehicle that is not insured.
• Road service pays for tow truck assistance in the event of a breakdown.

If the vehicle is owned outright, the driver has the choice of providing insurance coverage that will include liability and medical up to the limits set by law, and nothing more. The insurance company will still set a deductible, which can be raised. For just a few dollars, the driver can add in uninsured motorist coverage. A wise choice, usually, that provides protection if the other drivers involved in an accident have no or too little coverage themselves. This is minimal coverage and is usually chosen when the vehicle is worth little.

Many vehicle owners decide it is worth the higher premium to have full coverage, even though there is no loan. They may also include coverage for a rental car if they find themselves without a vehicle due to an accident, until repairs are completed. This is referred to a loss of use coverage. This is valuable when the insured vehicle is fairly new or is the only transportation to get to work.