Auto insurance is a policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out-of-pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.
Understanding Auto Insurance
Auto insurance premiums vary depending on age, gender, years of driving experience, accident and moving violation history, and other factors. While not all countries require car insurance, most do mandate a minimum amount of auto insurance. That minimum varies by state, but many people purchase additional insurance to protect themselves further. Additionally, if you're financing a car, the lender may stipulate that you carry certain types of car insurance.
Which insurance is right for you?
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