What is auto insurance?
An auto insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific car-related financial losses during the term of the policy.

Why do I need it?
In some states, to drive (get license plates) you must carry:

• In order to pay for a loss that has been caused by you, liability coverage is required.
• Coverage can also be taken to cover damages for medical and property damages for you and your passengers, regardless of whose fault it is.
• You can also take Comprehensive and Collision coverage, along with other optional coverage’s.

Without insurance, you risk paying for the full cost of:

• Damages you cause to others, or:
• Responsible for repairing or replacing the car if it is damaged or stolen.

Deductibles
The deductible is the portion of a covered loss that is your responsibility. The deductible, when applicable, applies to each covered loss. Although deductibles vary by state, they are typically available in amounts such as $100, $250, $500, or $1000.

For example, if you had a $500 deductible, you would need to pay $500 of the covered loss.

Who is covered under an auto policy?
Your policy usually covers you, your spouse, and other relatives who live primarily in your household and others who have permission to drive one of your covered vehicles