Exactly what is auto insurance?
Auto insurance safeguards 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 insurer accepts pay your losses as defined in your policy. Auto insurance offers property, liability and medical coverage:
Property coverage pays for damage caused to or theft of your vehicle.
Liability coverage pays for your legal duty to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and in some cases lost incomes and funeral service expenditures.
A vehicle insurance plan is consisted of six different types of coverage. Most states require you to purchase some, but not all, of these coverages. If you’re financing a car, your loan provider might also have requirements. The majority of auto policies are for 6 months to a year. Your insurance provider ought to inform you by mail when it’s time to renew the policy and to pay your premium.