Automobile 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:
- 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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