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.
