What is Auto Insurance?
Vehicle insurance or auto insurance is insurance for cars, trucks, motorcycles, and other road vehicles. It is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
By applying for coverage, you’re agreeing to pay an auto insurance premium to the insurance company. In return, that company agrees to pay covered costs associated with an auto accident once the deductible has been met under the policy terms.
What does Auto Insurance Cover?
• Vehicle damages, including your car or another driver’s vehicle
• Property damage or bodily injuries caused by an accident
• Medical bills and/or funeral expenses associated with injuries sustained in an accident.

What does Auto Insurance not Cover?
Your personal auto policy only covers personal driving, whether you’re commuting to work, running errands, or taking a trip. Personal auto insurance will not provide coverage if you use your car for commercial purposes— such as making deliveries. (e.g., if you deliver pizzas or something else). It will also not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services. Maintenance, mechanical failures, and wear and tear to your vehicle aren’t covered by auto insurance.
Who is Protected by Auto Insurance?
Your auto policy will cover you and other family members on your policy, whether driving your car or someone else’s car (with their permission). Your policy also provides coverage if someone who is not on your policy is driving your car with your consent.
How Does Car Insurance Work?
Car insurance works as a safeguard for your financial well-being and your vehicle in case of accidents, theft, or other incidents beyond your control. Your car insurance company can pay for vehicle repairs, medical expenses, and damages or injuries you cause to another driver.
When you buy or lease a car, motorcycle, or some other vehicle, it’s important to protect that investment.
Getting auto insurance can offer reassurance in case you’re involved in an accident or the vehicle is stolen, vandalized, or damaged by a natural disaster. Instead of paying out-of-pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.
Why Auto Insurance is Necessary?
If you own an automobile, regardless of whether your state requires auto insurance, having an insurance policy can save you a lot of money and aggravation in the long run. If you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. If you have automobile insurance, it will pay for the other party’s damages if you are at fault.
The right car insurance can help protect you, your family members, your passengers, and other drivers.
If an accident happens, you want to know you have the right coverage to take care of any property or bodily injury costs that may arise. By applying for coverage, you’re agreeing to pay an auto insurance premium to the insurance company. In return, that company agrees to pay covered costs associated with an auto accident once the deductible has been met under the policy terms.