Auto insurance protects you against heavy financial loss if you ever find yourself in an accident. It is a contract between you and the insurance company. You pay the premium and the insurance company pays your losses as defined in your policy. Auto insurance generally provides property, liability, and medical coverage.

Property coverage pays for damage to or theft of your cars. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.