Types of auto insurance

The basic types of auto insurance coverages are:

1. bodily injury liability, which provides coverage for bodily injury claims from the people you might injure in an accident

2. property damage liability, which covers any property damages to third parties -- such as another person's car you damage -- which you cause or are responsible for

3. medical payments to the policy owner and other passengers in the policy owner’s car

4. uninsured and underinsured motorist coverage, which protects you when the negligent driver has no insurance or insufficient insurance (in most states, this covers only bodily injury losses -- though some states also include property damage losses)

5. physical damage covers damage to your car

a. collision, which covers losses to your car when you are involved in a collision

b. comprehensive, which covers most non-collision physical damage to your car (if your car is damaged in a storm, or a windshield breaks, for example).

Auto insurance

Vehicle insurance (Auto Insurance)

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Auto insurance protects you against financial loss if you have an accident.
Auto insurance provides property, liability and medical coverage:

1. Property coverage pays for damage to or theft of the car.
2. Liability coverage pays for the legal responsibility to others for bodily injury or property damage.
3. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Most countries require you to buy some, but not all, of these coverages. When a car is used as collateral for a loan the lender usually requires specific coverage. Most auto policies are for six months to a year.

Websites for Auto Insurance

Websites for Auto Insurance

1. Insurance Information Institute
http://www2.iii.org/individuals/autoinsurance/

At the Insurance Information Institute you can find out how auto insurance works, determine how much coverage you need, and learn the steps of filing a claim. You can also explore statistics for things like teen driving, driving and cell phones, etc, and watch videos of what to do after an accident.

2. Wikipedia on Auto Insurance
http://en.wikipedia.org/wiki/Vehicle_insurance

While you should always visit your state’s official site for your specific insurance minimums and insurance consumer rights, Wikipedia has a comprehensive article covering auto insurance and auto insurance laws around the world. The article also contains good general information on coverage levels and insurance terms, and links to articles by reputable sources. If you are completely new to auto insurance, Wikipedia is an excellent place to start!

3. Consumer Action
http://www.consumeraction.gov/caw_insurance_auto.shtml

At this federal government site you can find links and contact information for your local insurance regulator, and read tips on finding insurance that complies with state laws. Consumer Action also helps you know your rights as a consumer, and provides advice on staying safe while researching auto insurance online.