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:
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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
