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auto insurance
What is auto
insurance?
Auto insurance protects you against financial
loss if you have an accident. It is a contract between you and the
insurance company. You agree to pay the premium and the insurance
company agrees to pay your losses as defined in your policy.
Auto insurance provides property, liability and medical coverage:
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others
for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries,
rehabilitation and sometimes lost wages and funeral expenses.
An auto insurance policy is comprised of six different kinds of
coverage. Most states require you to buy some, but not all, of these
coverages. If you're financing a car, your lender may also have
requirements.
Most auto policies are for six months to a year. Your insurance company
should notify you by mail when it's time to renew the policy and to
pay your premium.
Insurance content
provided by the Insurance Information
Institute
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