Auto insurance is a type of insurance policy that protects you financially in case of an accident, theft or damage to your vehicle. It is mandatory in most states and can provide coverage for:
1. Liability coverage: This covers the damages that you are legally responsible for if you cause an accident. It includes bodily injury liability, which pays for the medical expenses, lost wages, and other damages suffered by other people involved in the accident, and property damage liability, which covers the cost of repairing or replacing another person's property that was damaged in the accident.
2. Collision coverage: This covers the damage to your own vehicle in case of a collision with another car or object.
3. Comprehensive coverage: This covers damage to your car from events such as theft, vandalism, fire, and natural disasters.
4. Personal injury protection (PIP) or medical payments coverage: This covers the medical expenses of you and your passengers in case of an accident, regardless of who was at fault.
When you buy auto insurance, you pay a premium to the insurance company, which is based on factors such as your age, driving record, the type of car you drive, and the coverage options you choose. The deductible is the amount you pay out of pocket before your insurance kicks in.
It is important to shop around for auto insurance quotes and compare coverage options and prices from different insurance companies before selecting a policy that best suits your needs and budget.