Understanding Auto Insurance: A Comprehensive Guide
Introduction to Auto Insurance
Auto insurance is a financial product designed to provide protection against financial losses resulting from accidents, theft, or other incidents involving your vehicle. It is a contractual agreement between the insured (the policyholder) and the insurer (the insurance company), where the insurer agrees to compensate the insured for specified losses in exchange for premium payments.
Types of Auto Insurance Coverage
1. Liability Insurance
Liability insurance covers damages and injuries caused to others in an accident where you are at fault. It typically includes bodily injury liability and property damage liability. Bodily injury liability covers medical expenses and lost wages for the injured party, while property damage liability covers repair or replacement costs for damaged property.
2. Collision Insurance
Collision insurance covers damage to your vehicle in the event of a collision with another vehicle or object, regardless of fault. This coverage helps pay for repairs … Read more