A Car insurance policy is a safe guard for consumers that shields private passenger carrying automotive vehicle owners from monetary losses if a vehicle they own is involved in any type of accident. An agreement, contract, or policy formed when a consumer and an insurance company establish specific protections involving vehicle ownership. Consumers agree to allocate funds call premiums and the insurance company agrees to provide benefits that cover setbacks from an accident involving a vehicle. Damages can include property, physical injury, medical treatments, or death as established in the car insurance policy.
Car insurance protects you against financial loss if you have an accident. It is a agreement between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as distinct in your policy.
Car insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal liability to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
A Car insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.
Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.