Vehicle insurance, also known as auto insurance or car insurance, is a contract between a policyholder and an insurance company that provides financial protection in the event of accidents, damage, or theft involving the insured vehicle. This insurance typically covers a range of circumstances, including:
- Liability Coverage: This covers bodily injury and property damage caused to others in accidents where you are at fault. It is often a legal requirement in many places.
- Collision Coverage: This covers the cost of repairing or replacing your vehicle if it's damaged in a collision, regardless of who is at fault.
- Comprehensive Coverage: This covers damage to your vehicle from non-collision incidents, such as theft, vandalism, natural disasters, or hitting an animal.
- Uninsured/Underinsured Motorist Coverage: This protects you in case you are in an accident with a driver who doesn't have insurance or has insufficient coverage.
- Personal Injury Protection (PIP): This covers medical expenses, lost wages, and other expenses for you and your passengers, regardless of who is at fault in an accident.
