Auto Insurance
Auto insurance is a contract between an individual and an insurance company, designed to provide financial protection in case of accidents, theft, or other incidents involving the insured vehicle. It is a legal requirement in many countries and states to have auto insurance to operate a vehicle on public roads.
Key Components:
Liability Coverage:
- Covers bodily injury and property damage that the policyholder may cause to others in an accident.
- Mandatory in most places to cover the costs of injuries and damages to other parties.
Collision Coverage:
- Pays for damage to the insured vehicle resulting from a collision with another vehicle or object, regardless of fault.