Auto Insurance Definition
What is Auto Insurance?
Auto insurance be defined as a coverage that protects you against financial loss if you have an accident.
It is a policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.
Auto insurance is a contract between you and the insurance company.
If you agree to pay as certain sum of money known as premium and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance protects your property, liability and medical base on the policy
- Property coverage (damage or theft)
- Liability coverage (bodily injury or property damage)
- Medical coverage (injuries, rehabilitation and sometimes lost wages and funeral expenses.