What is car insurance?
An auto insurance policy is a contract between you and an insurance company – sometimes a local insurance company, sometimes nationwide. (It’s always a good idea to do an auto insurance quotes comparison – and we’re sure you’ll find that, in most cases, The General® is the lowest!)
In exchange for paying a premium, the car insurance company promises to pay for specific car-related financial losses within the selected coverage limits that you may have during the term of the agreement.
Basically, if you get in an accident, car insurance protects you from financial hardships that could result from damages, injuries, or lawsuits from other drivers.
Most states require that you carry automobile liability insurance in certain minimum amounts. If you are at fault in an accident, the law requires that you pay the damages sustained by the person who is not at fault. These can include property damage, which is the cost to repair or replace any property that you have damaged.