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.
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