Auto Insurance protects you against financial loss if you have an accident. One of your largest exposures to a lawsuit is from an automobile accident. The insurance is a contract between you and the insurance company. You pay the premium and the insurance company promises to pay your auto-related losses as according to the terms of your policy.
There are 3 areas of coverage:
- Bodily Injury / Property Damage coverage to pay for losses you cause others.
- Physical Damage coverage pays for damage or theft of your vehicle.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.