Definition of Auto insurance:

Auto insurance contract is essential for protecting drivers and vehicles against financial loss from accidents, theft, or damage. Here are key points regarding auto insurance:

How does it work?

There are two mandatory coverages:

Bodily Injury to Others

Also commonly called "bodily injury liability coverage," is a type of insurance that protects you from financial responsibility if you accidentally injure someone else in an accident, typically referring to car accidents, and are found at fault, covering their medical expenses and other related damages as a result of the injury; essentially, it pays for the other person's injuries if you cause an accident.

Personal Injury Protection (PIP)

Coverage for accidents with uninsured drivers, and property damage liability. Additional options like Comprehensive and Collision coverages are also recommended for more extensive protection.

Factors Affecting Premiums: Rates vary based on age, driving history, credit score, vehicle type, and geographical location. For example, younger drivers typically face higher rates, while good driving records can lead to lower premiums.

Comparison Shopping: Regularly comparing quotes from different companies is crucial to find competitive rates. It's advisable to obtain quotes at least annually and consider using online comparison tools or independent agents for efficiency

Important:

Regularly review your insurance needs (every 2-3 years, more often if there is an increase in asset value or worth or before adding a new risk). Consulting with an agent can ensure adequate coverage tailored to your specific risks.