Monday, March 08, 2010

Again : What Is Auto Insurance ?

If by now you still have no idea what an auto insurance coverage is all about, let me briefly run it through again.

In bried, auto or car insurance protects you against financial loss if you are involved in 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 vehicle.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
  • Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
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 certain requirements.

Most car 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.

I hope this provides you with a better understanding of what an auto insurance and what it covers. For more details, please feel free to browse throught my blog.