| By Freelance Writer for Insure.com |
| Auto insurance protects you, and others, from financial ruin in the event of an auto accident. It also comes to the rescue if your car is vandalized, catches on fire or is stolen.
And beyond protecting you financially, auto insurance is a social responsibility. Those who drive without insurance, and without the ability to pay for damages they cause, put the rest of us at great financial risk.
That's why all states (except New Hampshire and Wisconsin) require drivers to carry liability insurance. And even in New Hampshire and Wisconsin, if you choose not to carry insurance you must show that you have enough assets to pay for damages in the event of an accident. A basic auto insurance policy contains six types of coverage. Depending on where you live, some coverages are required and some are optional. (See Mimimum levels of required auto insurance for details.)
Auto insurance is comprised of:
1. Bodily injury liability 2. Property damage liability 3. Medical payments or Personal Injury Protection (PIP) 4. Collision 5. Comprehensive 6. Uninsured/Underinsured motorists coverage |
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