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.