Besides your home, a car is often your biggest asset. Auto insurance protects against potentially crippling financial losses and the sheer inconvenience of being without transport.
Not all auto insurance is created equal. Some policies simply meet the legal requirements. In most states, this means your auto insurance will cover the damage you cause to other vehicles in collisions. However, the insurance in some ‘no fault’ states will also cover your own vehicle. Additionally, the law usually states that auto insurance policies must cover some medical bills that result from a crash.
Other policies go further and protect your car if it is stolen, damaged or destroyed by fire, or damaged in an accident that doesn’t involve any other vehicles. It is also possible to obtain an auto insurance policy that protects your car if it is damaged by an uninsured driver.