| Auto insurance is used to protect an individual or | | | | roadways. In many cases, if you operate a |
| entity against financial loss. Financial loss can occur | | | | vehicle that is not insured, you can have your |
| in many different ways in association with | | | | license revoked and pay large penalties. Some of |
| vehicles, and most auto insurance policies agree to | | | | the more popular coverage options for auto |
| cover the individual or entity by providing | | | | insurance policies available are; |
| insurance against property damage, medical | | | | Collision- this type of coverage protects your |
| coverage and liability damages. For instance, many | | | | vehicle from damages that result from a car |
| auto insurance policies cover: | | | | accident with another vehicle or with other |
| Coverage of property damage, sometimes | | | | objects on the road. If your vehicle gets into a |
| including theft and accidents | | | | car accident, the insurance will pay for repairs or if |
| Medical coverage in the case you are inured in a | | | | the car is totaled will cover the damages for the |
| vehicle accident. Many policies cover treating | | | | car's worth. |
| immediate injuries, some policies continue | | | | Comprehensive- this type of coverage protects |
| coverage for rehabilitation or even lost wages and | | | | your vehicle from damages that are a result of |
| funeral expenses. | | | | things other than a collision. For instance, if your |
| Coverage for liability damages. Liability coverage | | | | radio was stolen and the burglar broke your |
| will pay for legal damages done to other individuals | | | | window and ruined your dashboard, the auto |
| or property. | | | | insurance will cover your losses or fix the |
| Auto insurance is essentially a contract between | | | | damage. |
| you and your insurance company. You pay a | | | | Policies are usually for 6 months or a year and |
| premium at a regular interval and the insurance | | | | the rate that you pay for your premium is |
| company is legally responsible to cover damages | | | | dependent on many variables including type of |
| that your policy covers. | | | | coverage, age, type of vehicle, location of |
| There are many different types of policies and it | | | | residence and how you use your vehicle. There |
| should be noted that the vast majority of state | | | | are many other variables that might be taken into |
| governments require an individual or entity to | | | | consideration; however each insurance company |
| purchase at least basic auto insurance coverage in | | | | has their own formula for calculating the cost of a |
| order to operate certain vehicles on public | | | | policy. |