What is auto insurance?

Auto insurance is a contract between you and an insurance company that provides financial protection against losses from accidents, theft, or other incidents involving your vehicle. It covers property damage, liability, and medical expenses, depending on the policy.

Auto insurance is a contract between a vehicle owner and an insurance provider, designed to protect you financially in the event of an accident, theft, or damage to your vehicle. There are several types of coverage included in auto insurance, such as liability insurance, comprehensive coverage, and collision coverage.- Liability Insurance covers damages to other people's property and medical expenses when you're at fault in an accident.- Comprehensive Coverage protects against damage to your car not involving a collision, like theft, vandalism, or weather-related incidents.- Collision Coverage covers repairs or replacement of your car after an accident, regardless of who is at fault.

If you accidentally rear-end another car, your liability insurance would pay for the repairs to the other vehicle, while your collision insurance would cover the damage to your own car. If your car is stolen, comprehensive insurance would help replace it.

Auto insurance is required by law in most states, but the specific requirements vary. It’s essential to tailor your coverage to meet both legal standards and your own financial needs. Always compare policies to ensure you're getting the best coverage for your circumstances.