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Auto Insurance Car or auto insurance refers to the type of insurance that protects you against financial loss if you have an accident and is basically a contract between you and the insurance company of your choosing. In a nutshell, you pay a premium to your insurance company at predetermined intervals and the company in turn agrees to pay you any losses incurred as defined in the terms of your policy. All insurance policies cover three main areas: property, liability and medical. Property cover pays for damage or theft of your car, liability cover pays for your legal responsibilities to others for injury or damage to property and medical cover pays for the cost of treating injuries, rehabilitation and often lost wages and funeral costs. Basic auto policy may include six different coverages which would all be priced individually. These coverages are collision, medical payments or personal injury protection, bodily injury liability, property damage liability, comprehensive and uninsured or under-insured motorist coverage.

Contributed by Anthony Carter on March 11, 2008, at 7:22 AM UTC.

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This intel was contributed by Anthony Carter Anthony Carter

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