When you purchase car insurance, you enter into a contract with the insurance provider that protects you from financial loss if you are involved in an accident or your vehicle is stolen. In exchange for your payment of a premium, the insurance company undertakes to compensate you for your losses in accordance with the terms of your policy.

Auto insurance provides coverage for the following items:

Property loss or damage, such as automobile theft or damage to your home

Liability refers to your legal obligation to others in the event of bodily injury or property damage.

Medical expenses include the cost of treating injuries, rehabilitation, and, in some cases, lost wages as well as burial costs.


While the majority of basic, legally mandated auto insurance policies cover damage caused by your vehicle, they do not cover damage to your own vehicle. It is recommended that you examine the following optional coverages for your own car:

Collision Insurance

When you’re at fault in a collision with another vehicle or an object (such as a tree or a railing), collision insurance pays for the damage to your vehicle that happens as a result. However, while collision insurance will not reimburse you for technical failure or normal wear and use on your vehicle, it will cover damage caused by potholes or rolling your vehicle.

Insurance against theft and damage

Caused by events other than a collision, such as fires, floods and other natural disasters; vandalism; hail; falling rocks or trees; and other hazards—even being struck by an asteroid!

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Glass Coverage

Protects against windshield damage, which is a typical occurrence on the road. Some auto insurance policies feature no-deductible glass coverage, which includes coverage for side windows, rear windows, and glass sunroofs, among other things. Alternatively, you can purchase supplementary glass coverage.

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