What is Auto Insurance?

Auto insurance provides financial protection against physical damage and bodily injury resulting from traffic accidents, as well as liability that could arise from incidents in a vehicle. It helps cover costs of vehicle repairs, medical expenses, and potential legal fees from accident-related lawsuits.

Key Benefits

  • Protection from financial liability after an accident
  • Coverage for vehicle damage from collisions, weather, theft, and vandalism
  • Medical expense coverage for you and your passengers
  • Protection against uninsured/underinsured motorists
  • Potential roadside assistance and rental car coverage

Coverage Options

Liability Coverage

Required in most states, this covers bodily injury and property damage you cause to others in an accident. It doesn't cover your own vehicle or injuries.

Collision Coverage

Pays for damage to your car from an accident regardless of who is at fault. This is particularly important for newer or more valuable vehicles.

Comprehensive Coverage

Protects against non-collision events like theft, vandalism, fire, natural disasters, and hitting an animal. Often paired with collision coverage.

Uninsured/Underinsured Motorist

Covers you when you're hit by a driver with no insurance or not enough insurance to cover your damages.

Frequently Asked Questions

How are auto insurance premiums determined?

Premiums are based on factors like your driving record, age, location, vehicle type, credit history, coverage amounts, and deductibles. Insurance companies use these to assess risk.

What is an auto insurance deductible?

A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Higher deductibles generally result in lower premiums, but more out-of-pocket costs when filing a claim.

Does auto insurance follow the car or the driver?

In most cases, auto insurance follows the car. This means that your car insurance typically covers your vehicle regardless of who is driving, as long as they have permission to use your car.

How do accidents affect my insurance rates?

Accidents where you're at fault typically lead to higher premiums. Many insurers offer accident forgiveness programs for first-time accidents or minor claims.