Financial security designed to protect everyone on the road—and their vehicles—from injury or harm. Also guards the insured from financial obligation or lawsuit in the event they cause an accident.
Car insurance coverage includes three broad categories of damage designed to protect policyholders from loss:
- Property: Pays for damage to or theft of your car
- Liability: Covers others against bodily injury or property damage
- Medical: Pays the cost of treatment, rehabilitation and sometimes lost wages and funeral expenses due to an accident
Though each state determines its own car insurance coverage requirements, drivers in every state must carry proof of some type of insurance in order to drive. To find out what car insurance coverage a particular state requires, check with the Insurance Information Institute at III.org or speak with a local car insurance agent.