What Is Auto Insurance?

Auto insurance is a policy that helps protect you financially if you’re involved in a car accident or your vehicle is damaged or stolen. It can help pay for repairs, medical bills, and liability costs when unexpected events happen on the road.

Simply put, auto insurance helps cover the risks that come with owning and driving a vehicle.

Why Auto Insurance Is Important

Most states require drivers to carry auto insurance to legally operate a vehicle. This coverage helps ensure that drivers can pay for injuries or damage they may cause to others.

Beyond meeting legal requirements, auto insurance protects your finances. Accidents can be expensive—even minor ones. The right coverage can help prevent you from paying large out-of-pocket costs and give you peace of mind every time you get behind the wheel.

What Does Auto Insurance Cover?

An auto insurance policy is made up of several key coverages, each designed to protect you in different situations.

Liability Coverage

This coverage pays for injuries or property damage you cause to others in an accident.
Example: You accidentally rear-end another car and are responsible for their repairs and medical bills.

Collision Coverage

This helps pay for damage to your vehicle if you collide with another vehicle or object.
Example: You hit a guardrail or another car, and your vehicle needs repairs.

Comprehensive Coverage

This covers damage to your vehicle caused by events other than collisions.
Example: Theft, vandalism, fire, hail, or a tree falling on your car.

Uninsured / Underinsured Motorist Coverage

This protects you if you’re hit by a driver who has little or no insurance.
Example: Another driver causes an accident but doesn’t have enough coverage to pay for your injuries or repairs.

Medical Payments or Personal Injury Protection (PIP)

This helps cover medical expenses for you and your passengers after an accident, regardless of who was at fault.
Example: Emergency room visits or follow-up medical care after a crash.

Choosing the Right Auto Insurance Coverage

Every driver’s situation is different. The right coverage depends on your vehicle, driving habits, budget, and state requirements. An experienced agent can help you choose limits and options that protect you without overpaying.

Ready to get covered or have questions?
We’re here to help you understand your options and find auto insurance that fits your needs.