What Is Auto Insurance?

November 06, 2020 by Dan Green

Auto insurance is an insurance policy which sends cash payments in the event of a car accident, or a car theft.

Auto insurance is required for drivers in nearly every state.

The reason why car insurance is mandatory is because car accidents often involve two or more people. States don’t care if you choose to leave yourself or your own car uninsured, but they won’t allow you to harm other people without a plan to pay for another person’s damages, injuries, or expenses.

Covering other people’s losses is a key component of auto insurance. Even cheaper car insurance makes sure you’ve got this included.

Auto insurance is protection.

With auto insurance in place, you don’t have to worry that a car accident will push you into bankruptcy, or rob you of your nest egg. You don’t even have to mess with post-accident paperwork.

When you’re properly insured, damage claims are handled fairly and quickly; and, your insurance company works with the repair shop and other driver’s insurer to help get things settled, so you don’t have to.

Are you a first time home buyer?

Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.

More than 25,000 home buyers have customized their content

Sign up to customize yours

Already have an account? Log In