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- Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft1. An auto insurance policy will cover you and other family members on the policy, whether driving your car or someone else’s car (with their permission)2. Your auto insurance policy consists of multiple coverages that provide protection in different situations involving your vehicle3. Most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist4.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.www.iii.org/article/what-auto-insuranceAn auto insurance policy will cover you and other family members on the policy, whether driving your car or someone else’s car (with their permission). Your policy also provides coverage to someone who is not on your policy and is driving your car with your consent.www.investopedia.com/terms/a/auto-insurance.aspYour auto insurance policy consists of multiple coverages that provide protection in different situations involving your vehicle. Coverages have different limits and may have deductibles. Specific coverages and limits may also be required by a lienholder or lender.www.geico.com/information/aboutinsurance/auto/While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist.www.iii.org/article/what-covered-basic-auto-insuran…
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