Auto Insurance protects an individual against financial loss in the event of a motor vehicle accident. Put simply, it is a piece of contract between an insured individual and the insurer (the insurance agency) to pay your losses as defined in a policy in lieu of regular and agreed upon premiums paid by the insured.
Why you need a comprehensive auto insurance policy?
In most states, it is necessary to have auto insurance for even registering a vehicle. The reason behind the legal sanction for insurance is simply because the state wants to minimize the overall impact of property damage costs and to minimize the chances of huge accident related medical bills going unpaid.
Safeguard Against Financial Losses
Full coverage auto insurance provides the necessary coverage to motor vehicle owners against the financial losses a motor accident may cause.
Auto Insurance policies generally cover:
- Medical coverage provisions are meant to cover costs of rehabilitation and medical bills.
- Liability coverage pays for your legal responsibility to others for bodily injuries or damage to property caused by you.
- Property coverage pays for damage to or theft of your automobile.