What Is Car Insurance?
Car insurance is effectively a contract between yourself and an insurance company in which you agree to pay premiums in exchange for protection against financial losses stemming from an accident or other damage to the vehicle. Auto insurance can offer coverage for:
Vehicle damages, including your car or another driver’s vehicle
Property damage or bodily injuries caused by an accident
Medical bills and/or funeral expenses associated with injuries sustained in an accident
The exact details of what’s covered depend on the minimum coverage requirements for your state and any additional coverage options you choose to include. Every state except New Hampshire requires drivers to have a minimum amount of bodily injury liability coverage and property damage liability coverage.