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What is Car Insurance?
Car Insurance Definition – Vehicle insurance is insurance for cars, motorcycles, trucks, and other road vehicles. It is also known as car insurance, auto insurance or motor insurance.
Its primary use is to provide financial security against physical damage or bodily injury resulting from traffic accidents and on liability that could also arise from incidents in a vehicle.
Vehicle insurance may additionally give financial protection against vehicle theft and against damage to the vehicle provided from events other than traffic accidents, such as weather or natural disasters, keying and damage sustained by colliding with fixed objects. The precise terms of vehicle insurance vary with lawful regulations in every country.
Car insurance can help pay for:
- Medical expenses
- Rental fees
Your state likely has car insurance needs for some coverages that you will require to follow. Learn more by reading through our auto insurance definitions. Also check: 18 Wheeler Accident Lawyer San Antonio
What is Auto Insurance?
Auto insurance is a deal between the insurance company and you, that defends you against economic loss in the event of theft or an accident.
In exchange for your giving a premium, the insurance company agrees to pay your damages as described in your policy.
Auto insurance provides coverage for:
- Liability – your legal duty to others for physical injury or property loss.
- Property – Like damage to or theft of your car
- Medical – the cost of operating injuries, recovery and sometimes lost earnings and funeral costs.
Basic personal auto insurance mandated by most U.S. states, and laws vary.
Auto insurance coverages priced separately to let you customize coverage amounts to suit your specific requirements and budget.
Policies are commonly allotted for six month or 1-year timeframes and are renewable.
The insurance company gives notice when it’s time to renew the policy and pay your premium.