Auto insurance/Vehicle Insurance is insurance purchased for cars, trucks, and other vehicles. It guards a person against the financial loss if he or she has an accident. It is a contract between the person (insured) and the insurance company (insurer) where the insured agrees to pay the premium and the insurance company agrees to pay for his or her losses as defined in the policy. Most auto policies are for six months to one year. Your insurance company must notify you by mail when it’s time to renew the policy and to pay your premium.

Types of vehicles covered under auto/vehicle/motor insurance are:

1. Two wheelers
2. Cars
3. Commercial vehicles

Auto insurance might include following six coverage each of which is priced separately.

1. Bodily Injury Liability
This coverage relates to injuries that you, the designated driver or policyholder, cause to someone else. You and your family members listed on the policy are also covered when driving someone else’s vehicle with their permission. It’s very important to have adequate liability insurance, because if you are involved in a serious accident, you might be sued for a large sum of money. Definitely one should consider buying more than the state-required minimum to protect assets such as their home and savings.
 
2. Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries/hurt to the driver and passengers of the policyholder's vehicle. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
 
3. Property Damage Liability
This coverage pays for damage you (or someone driving the vehicle with his/her permission) may cause to someone else's property. Generally, this means damage to someone else’s vehicle, but it also includes damage to lamp posts, telephone poles, buildings, fences or other structures your vehicle hit.
 
4. Collision
This coverage pays for damage to your vehicle resulting from a collision with another vehicle, object or as a result of flipping over. It also covers damage caused by potholes. Even if you are at responsibility for the accident, your collision coverage will pay back you for the costs of repairing your vehicle, minus the deductible. If you're not at fault, your insurance company might try to recover the amount they paid you from the other driver’s insurance company. If the effort is successful, you'll also be reimbursed for the deductible.
 
5. Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another vehicle or object, like fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds, deer, etc.
Comprehensive insurance will also reimburse you if your windshield is cracked or crushed. Some companies offer coverage for glass with or without a deductible.
 
6. Uninsured and Underinsured Motorist Coverage