Car insurance is a contract between you and the insurance company that protects you financially against losses that may arise in case of an accident involving your vehicle. The contract you sign sets the premium you pay for the coverage and the amount of coverage provided by the insurer in case if any accident takes place. More...
A typical car insurance policy provides property, liability and medical coverage:
- Property coverage is used to pay for any damage to your car or its theft.
- Liability coverage is used to provide legal responsibility to parties injured or property damaged in an accident involving your vehicle.
- Medical coverage is used to pay out healthcare costs caused by the injury and sometimes funeral expenses and lost wages.
A car insurance policy consists of six types of coverage. The types of coverage required in the policy differ from state to state. If you used a car loan to finance your car, your lender may also require additional types of coverage.
The typical car insurance policy is for a year or six months. You will be noted by your insurance company if your policy needs to be renewed or you have to pay the premium. |
