Automotive insurance, also known as car insurance or auto insurance, is a type of insurance that protects the policyholder against financial loss in the event of an accident, theft or damage to their vehicle. It is typically required by law in most countries for individuals to have insurance to operate a vehicle.
Automotive insurance policies typically include several different types of coverage, including:
Liability coverage: Pays for damage or injuries that the policyholder causes to another person or their property while operating their vehicle
Collision coverage: Pays for damage to the policyholder’s vehicle as a result of a collision with another vehicle or object
Comprehensive coverage: Pays for damage to the policyholder’s vehicle as a result of non-collision events, such as theft, vandalism or natural disasters
Personal injury protection (PIP) or medical payments coverage: Pays for medical expenses, lost wages and other costs related to injuries sustained in an accident, regardless of who is at fault
Uninsured motorist coverage: Pays for damages and injuries caused by an uninsured driver, or in a hit-and-run accident
These types of coverage vary from one insurance company to another and from one state to another. Some additional types of coverage may also be able to be added to the policy, like rental car coverage, roadside assistance, and so on.