There are a veritable plethora of terms for you to understand if you are going to begin to know what auto insurance is all about. You must know how to read your auto policy, know how to drive your vehicle, and you absolutely must know what affects your auto insurance premiums. One thing that will affect your auto insurance premium is what is known as a "hazard" in the world of auto insurance, here are the three main types of hazards in auto insurance.

Physical- a physical hazard in auto insurance is something that is out of the control of the driver of the automobile. For example, if it starts to rain then the risk, or hazard, involved in your drive suddenly goes up but rain starting is completely out of your control. Any auto insurance company would consider rain to be a hazard, but only a physical hazard that is out of your control.

Moral- a moral hazard in auto insurance is something that an individual would do to purposely cause an accident or claim. For example, if you were purposely trying to make someone rear-end your vehicle by constantly pulling in front of vehicles and slamming your brakes, you are committing what auto insurance considers to be a moral hazard.

Morale- a morale hazard in auto insurance is something that you are careless about and ends up causing an accident. For example, if you are speeding and weaving in and out of traffic because you know that you have auto insurance and it will pay for any damages you have committed a morale hazard.

When it comes down to it, a "hazard" in auto insurance is the element that is added that makes an accident more likely. If you become the person that makes these things a habit, expect it to be tough to find good auto insurance for a decent rate.