Car Insurance

Vehicle insurance also known as auto insurance, car insurance, or motor insurance, is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident. It is a contract between the insured and the insurance company. You agree to pay the premium and the insurance company agrees to pay losses as defined in the policy. Car or auto insurance provides property, liability and medical coverage:

1. Property coverage pays for damage to or theft of the car.
2. Liability coverage pays for the legal responsibility to others for bodily injury or property damage.
3. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An car or auto insurance policy comprises six kinds of coverage. Most countries require you to buy some, but not all, of these coverages. If you're financing a car, the lender may also have requirements. Most auto policies are for six months to a year.

In the United States, the insurance company should notify you by mail when it’s time to renew the policy and to pay the premium.