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What is auto insurance?
Auto insurance policies are purchased to minimize the personal financial impact associated with motor vehicle accidents, or other incidents, that may affect automobiles you own and drive. Risks and financical liability associated with automobile ownership include medical expenses for injured persons, property damages associcated with repair of vehicles involved in an accident, as well as non-accident damages that may result from storms, theft, vandalism or natural disaster. Insurance companies provide auto insurance through personal auto policies. A personal auto policy is a contract between you and your insurer, specifying each party's rights and obligations. Essentially, your insurer promises to provide specific coverage to you in exchange for your payment of specified premiums.

Why do you need it?
All states require you to be financially responsible when driving a car. Depending on your state, you may be required to purchase auto insurance or post a bond. State law (and/or your lender) generally specifies the minimum coverage amounts for auto insurance. You may find it prudent to purchase greater coverage, however, in order to protect your auto investment, pay for necessary medical expenses, cover your legal liability, and cover any additional losses related to automobile ownership. driving. For instance, if you cause an accident that results in damages over and above the limits of your insurance policy, your personal assets and future earnings may be put at risk.

When to get it
You may need to purchase auto insurance whenever you buy a new or used car. You may also need to reconsider your present policy if your family situation changes. Because marital status, number of children, and asset levels may change over time, you should review existing policies from time to time to ensure adequate coverage.

Information About Automobile Insurance Policies
Automobile insurance policies offer numerous types and amounts of coverage, depending upon an individual�s needs. Although there are numerous variations of automobile insurance coverage and amounts, automobile policies generally offer four areas of coverage: Liability, Medical Payments, Uninsured and/or Underinsured Motorists, and Coverage for Physical Damage to Your Vehicle.

• Liability:
  If you are involved in an automobile accident, you become liable for damage that you may have caused to another�s property. Property damage liability coverage protects you from such liability by paying for legal costs or damage claims that are filed against you as a result of an accident for which you are found legally liable. Bodily injury liability coverage protects you from escalating legal costs and claims filed against you in the event that you injure or kill someone in an automobile accident.
  
  
• Medical Payments (Med Pay):
  By offering medical payments/personal injury protection, your automobile policy will cover you and your passengers' medical expenses if you are injured in an automobile accident. Medical payments/personal injury protection also protects you as a passenger in someone else�s vehicle. �Med Pay� coverage only pays for physical injuries. It does not cover pain, suffering, or lost wages caused by an automobile accident.
  
  
• Uninsured or Underinsured Motorists:
  Protects you against drivers that may have caused the accident but are uninsured or underinsured. �Uninsured or underinsured motorist� coverage is also liability coverage for underinsured or uninsured drivers that you may collide with.
  
  
• Coverage for Physical Damage to your Vehicle:
  Protects your vehicle against physical damage caused by specific perils. Individual automobile policies have different levels of peril coverage. There are two types of coverage: collision, which covers only collision damage, and other than collision (also known as comprehensive coverage), which covers all risks such as vandalism or fire (with specific exclusions). Individual automobile policies will define the perils your vehicle is covered against and the physical damage coverage included in your policy.

As with most insurance products, automobile insurance policies are comprised and purchased based on each individual�s needs. There are specific exclusions, provisions, and limitations to each type and amount of coverage defined in individual automobile policies. Also, endorsements can be added in order to customize individual automobile insurance coverage.

Premiums
Automobile insurance premiums are written on an individual basis with an individual�s personal statistics taken into account to determine the cost of the policy. Key factors associated with automobile insurance premiums include:

• Operator Age
• Operator Gender
• Number of Operators
• Number of Vehicles
• Location
• Driving Record
• Type of Vehicle