Auto insurance is a contract between you and an insurance company. You pay a premium, and in return the insurer may cover certain losses based on your policy terms. In most U.S. states, some coverage is legally required before you can drive.
Core Coverage Types
Liability coverage helps pay for injuries or property damage you cause to others in an at-fault accident. Collision coverage helps pay for damage to your own vehicle after a crash. Comprehensive coverage helps with non-collision events like theft, hail, fire, or vandalism.
Deductibles and Limits
A deductible is the amount you pay out of pocket before coverage applies for certain claims. A limit is the maximum amount your policy can pay. Lower deductibles can increase premiums, while higher coverage limits may better protect your finances.
How Claims Work
After an accident, you usually report the event, provide evidence, and work with an adjuster. The insurer reviews fault, policy language, and damages before paying approved claims.
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