Auto insurance is a type of insurance policy that provides financial protection for vehicle owners in the event of accidents, theft, or other types of damage to the vehicle. It typically covers both liability (when you are responsible for damage to others) and physical damage to your own vehicle. Here are some common aspects of auto insurance:
1. **Liability Coverage**:
- *Bodily Injury Liability*: Covers medical expenses for injuries to others if you're at fault in an accident.
- *Property Damage Liability*: Covers costs for property damage you cause to another person’s vehicle or property.
2. **Collision Coverage**:
- Pays for repairs to your car if it's damaged in an accident, regardless of who is at fault.
3. **Comprehensive Coverage**:
- Covers damages to your car from non-accident-related events, such as theft, vandalism, natural disasters, or hitting an animal.
4. **Personal Injury Protection (PIP)** or **Medical Payments (MedPay)**:
- Covers medical expenses for you and your passengers after an accident, regardless of fault.
5. **Uninsured/Underinsured Motorist Coverage**:
- Protects you if you're in an accident with a driver who has no insurance or inadequate coverage.
6. **Deductibles and Premiums**:
- *Deductible*: The amount you pay out of pocket before the insurance kicks in.
- *Premium*: The amount you pay periodically (monthly or annually) to keep the insurance active.
7. **No-Fault Insurance**:
- In no-fault states, your own insurance company covers your medical expenses and loss of income after an accident, regardless of who was at fault.
Auto insurance is mandatory in most places, with specific minimum coverage requirements that vary by jurisdiction. Policies can also be customized with additional options, such as roadside assistance or rental car reimbursement.
