What is Auto Insurance?
What’s your ride of choice? Do you favor the practicality of a minivan or a neat hatchback?
Or perhaps you prefer the style of a luxury sedan or an all-wheel drive SUV?
Whatever your vehicle, having 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 a premium and the insurance company agrees to cover your losses as defined in your policy. Most auto policies are for six months or a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.
There are three types of coverage that your auto insurance provides:
Property coverage, which pays for damage to (or theft of) your vehicle
Liability coverage that covers your legal responsibilities to others (for bodily injury and/or property damage)
Medical coverage that helps you pay for treatment of injuries, rehabilitation and sometimes even lost wages and funeral expenses