What Is Car Insurance?

November 06, 2020 by Dan Green

Car insurance is an Insurance policy that makes cash payments after a car accident, damage to a car, or car theft.

Car insurance is also known as auto insurance.

Most states require drivers to carry auto insurance. This is because car accidents tend to involve two or more automobiles. States want drivers who cause an accident to have insurance money available to pay for other drivers’ repair and hospital bills, as needed.

Auto insurance makes sure of that.

When accidents happen, auto insurance companies pay for repairs to cars; for bills to doctors; and, for damage to public and private property, including street lamps, guard rails, sign posts, and fences in yards.

Auto insurance also covers accidental damage to a car, including damage from weather and flooding; and from falling trees, as examples.

When you have a proper car insurance policy in place, you can get into an accident without wiping out your savings or getting yourself into bankruptcy.

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