What is Auto Insurance?
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Auto Insurance Coverages
There are basically six different types of coverages. Some may be required by law. Others are optional. They are:
- Bodily injury liability – for injuries the policyholder causes to someone else.
- Medical payments or Personal Injury Protection (PIP) – for treatment of injuries to the driver and passengers of the policyholder’s car.
- Property damage liability – for damage the policyholder causes to someone else’s property.
- Collision – for damage to the policyholder’s car from a collision.
- Comprehensive – for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.
- Uninsured motorists coverage – for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.
Contact us to learn more about the right car insurance for you.