What is Auto Insurance?
Auto insurance is a contract between an individual and an insurance company that provides financial protection against losses incurred due to traffic accidents, theft, natural disasters, and other unforeseen events involving your vehicle. In exchange for a premium, the insurance company agrees to cover certain costs outlined in the policy.
Types of Auto Insurance Coverage
Liability Coverage: This is typically required by law in most states. It covers costs related to injuries and property damage you may cause to others in an accident where you are at fault.
Collision Coverage: Helps pay for repairs or replacement of your vehicle if it's damaged in a collision with another vehicle or object, regardless of fault.Comprehensive Coverage: Covers damage to your vehicle caused by non-collision incidents such as theft, vandalism, fire, or natural disasters.
Personal Injury Protection (PIP) / Medical Payments Coverage: Helps cover medical expenses for you and your passengers in case of injury in an accident, regardless of fault.
Uninsured/Underinsured Motorist Coverage: Protects you if you are involved in an accident with a driver who either has no insurance or insufficient insurance to cover your losses.
