Auto insurance is a mandatory policy that provides financial protection against physical damage and bodily injury resulting from traffic collisions and other incidents involving a vehicle. It combines liability coverage for damage you cause to others with optional coverage for your own vehicle, ensuring you can meet legal requirements and safeguard yourself from potentially devastating costs.
- What It Is: A policy that protects you financially in the event of a car accident or other vehicle-related damage.
- What It Covers:
- Liability: Covers bodily injury and property damage you cause to others.
- Collision: Pays for damage to your own car from an accident.
- Comprehensive: Covers damage to your car from non-collision events like theft, fire, or hail.
- Who It’s For: All vehicle owners. It is required by law in nearly every state.
- Key Considerations: State laws dictate the minimum amount of liability coverage you must carry. Rates are highly dependent on your driving record, location, and vehicle type.