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- An auto insurance policy is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft12. Your policy outlines what you can make claims for and how much coverage you have12. Your policy also covers you and other family members on the policy, whether driving your car or someone else’s car with permission3. Your policy may consist of different types of insurance, such as bodily injury liability, collision, or comprehensive4.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-insuranceCar insurance is a contract between you and the insurance company that provides you with specific coverage in exchange for your premium payments. Your car insurance policy is the contract that outlines what you can make claims for.www.forbes.com/advisor/car-insurance/best-car-ins…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). 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.aspWhile 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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