Auto insurance protects you against financial loss if you have an accident. Auto insurance provides property, liability and medical coverage as defined in your policy.
- Property coverage pays for damage to your car when in an accident or helps cover replacement if your vehicle is damaged beyond repair or stolen.
- Liability coverage pays for your legal obligation to others for property damage or bodily injury.
- Medical coverage pays for the cost of treating injuries, rehabilitation and, in some cases, lost income or funeral expenses that were the result of an accident.
A typical auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. Coverage amounts will vary by policy and premiums.