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Why should I have auto insurance?

Auto insurance is necessary to protect you against financial loss in case you are involved in a car accident. It is an agreement between the insurance company and you. According to the agreement you pay the premium and the insurance company make up your losses as it is stated in your policy.

Auto insurance gives you possibility to have property, liability and medical coverage:

  • Property coverage compensates damage to your vehicle. It also pays for the theft of your car.
  • Liability coverage is necessary to pay for your legal responsibility to other people for bodily injury or their property damage.
  • Medical coverage compensates the cost of the course of treatment, rehabilitation and sometimes even wages you haven't received due to injuries as well as funeral expenses.

An auto insurance policy includes six different types of coverage. Usually you are required to buy some of them, but not all. If you have got a car loan, you will also have to meet your lender's requirements.

Most auto policies expire in six months or a year. You will be notified by your insurance company by mail when the time for renewing the policy comes and you will have to pay your premium.

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