Automobile owners buy auto insurance policies to decrease the costs associated with getting into auto accidents. Instead of paying out of pocket for accident losses, people pay annual or monthly premiums to insurance companies, therefore the companies become responsible to pay all or most of the costs related to the accidents or other vehicle damage.

Auto insurance premiums differ depending on age, gender, years of driving experience, accident and moving violation history, and other factors.

Coverages included in an AUTO Personal Insurance Policy

In substitution for paying a premium, there is an agreement between the insured and the insurance company to pay the losses as outlined in the policy and it includes the following coverages:

  • Property – It includes the damage to or theft of the car
  • Liability – legal responsibility to others to pay for bodily injury or property damage
  • Medical – medical charges of treating injuries, rehabilitation, and sometimes lost wages and funeral expenditures.