What is Auto Insurance
Auto insurance protects you against financial loss in the event of an accident. It is essentially, a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses in the event of an accident as outlined in your policy.
Auto insurance protects property, liability and medical expenses:
- Property: Covers theft and damage to your vehicle.
- Liability: Covers your legal responsibility to others in the event of bodily injury or property damage.
- Medical: Covers the cost of treating injuries, rehabilitation, lost wages and funeral expenses.
The requirements on the type of insurance that is needed varies from state to state and between lenders if the car is leased.