Auto Insurance Provides 3 Coverages:
Property Coverage: Damage to or theft of your car.
Liability Coverage: Your legal responsibility to others for bodily injury or property damage.
Medical Coverage: The cost of treating injuries rehabilitation, lost wages, and sometimes funeral expenses.
Auto insurance policies are comprised of six different types of coverage. Most state laws require you to buy some, but not all, of these coverages. When financing a car, your lender may have their own coverage requirements.