Auto Insurance commonly referred to as Car Insurance is like a shield that protects you from financial loss if you get into a car accident.

Car insurance in the United States is a contractual agreement between an individual or entity, commonly referred to as the policyholder, and an insurance company, whereby the policyholder pays a premium in exchange for coverage for potential financial losses arising from an accident or other covered event involving their insured vehicle.

The terms and conditions of car insurance policies are governed by state and federal laws, and typically include various types of coverage, such as liability coverage, collision coverage, comprehensive coverage, uninsured and underinsured motorist coverage, and personal injury protection. These coverages may have limitations, exclusions, deductibles, and other terms that may vary by policy.

In the event of an accident, the policyholder is typically required to notify their insurance company promptly and cooperate with any investigation. The insurance company may then investigate the accident, determine liability, and provide coverage as agreed in the policy. The policyholder may also be required to report the accident to law enforcement and obtain any necessary medical treatment for injuries sustained in the accident.

Different car insurance plans cover different things, but most plans cover things like damage to other people's cars, medical expenses if someone gets hurt, and damage to your own car. It's important to choose a plan that covers what you need and to always drive safely to try to prevent accidents from happening.

Last Update: March 2023