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Auto Insurance
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 insurance
requirements. These coverages are as follow:
-
Bodily Injury Liability
-
Medical Payments or Personal Injury Protection (PIP)
-
Property Damage Liability
-
Collision
-
Comprehensive
-
Uninsured and Underinsured Motorist Coverage
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.
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