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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 requirements.
Most auto policies are for six months to a year.
Your insurance company should notify you by mail
when its time to renew the policy and to pay your
premium. |
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