If you have a car accident, auto insurance is what protects you from any financial loss or burden. It is a contractual agreement between you and your insurance company. In this agreement, you are responsible for paying the premium while your insurance company is in charge of paying your losses as defined in your policy.
Auto insurance provides coverage for property, liability and medical:
An auto insurance policy is made up of of six different kinds of coverage. Most states require you to purchase some, but not all, of these coverages. Your lender may also have some requirements if you’re financing a car.
Most automobile policies renew on a six month or yearly basis. Your insurance company will likely notify you by mail when it’s time to renew your policy and pay the premium. Medical pays for the cost of treating injuries, rehabilitation and oftentimes funeral expenses and lost wages.
Auto insurance is about protecting yourself financially.
Your insurance agent advocates for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion with your insurance agent: