Definition

Insurance coverage for your car that helps pay for damages or injuries in an accident. It can also protect against theft or other losses.

What to consider

  • Shop around and review your policy each year for better rates.
  • Think about how your driving habits affect your premium.
  • Review coverage details to make sure you’re not paying for extras you don’t need.

Real world scenarios

  • Ashley compares quotes from several providers to find an auto insurance policy that covers collision and liability without breaking her budget.
  • After a minor accident, Marcus files a claim and appreciates the financial protection his insurance gives him.
  • Leo’s clean driving record helps reduce premiums each renewal period, saving him money over time.

Related terms

Insurance & Financial Protection