Auto insurances is meant to protect you in case of an accident, injuries to others or damage property in an auto accident. It can also protect your car if it is damaged or stolen. An insurance policy is a contract between you and an insurance company. You agree to pay the premium and the insurance company agrees to pay your losses defined in your policy.
Auto insurance premiums vary depending on age, gender, years of driving experience, accident and moving violations history, and other factors. Most states mandate that all vehicle owners purchase a minimum amount of insurance, typically liability. In most cases, lenders require a comprehensive auto insurance policy.