||What is Auto Insurance?
An auto insurance policy is actually a package of different coverage's. Most states require you to purchase a minimum amount of certain kinds of coverage. But if you're interested in protecting yourself from a lawsuit or from wicked repair bills, then it makes sense to buy more than what's required.
Liability coverage is the foundation of any auto insurance policy, and is required in most states. If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to third parties in the accident, including legal bills. Bodily injury expenses include medical bills and lost wages. Property damage expenses pay for the repair or replacement of things you wrecked. The third party may also decide to sue you in order to collect "pain and suffering" damages.
Why do we need this?
Auto insurance is more than a matter of insuring your vehicle for loss or repairs after an accident. It is a financial safety net that can help you offset the cost of:
Bodily injuries to yourself or others
Lost wages due to injury
Benefits to survivors when an accident results in death
Lawsuits brought against you as the result of an accident
Repairs made to your auto due to damage caused in an accident.