Auto insurance protects individual against loss if one have an accident. It is a contract between an individual and the insurance company. The individual agree to pay the premium and the insurance company agrees to pay your losses as defined in the policy when an accident do happen.

Auto insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses

An automobile insurance policy is comprised of six different kinds of coverage. Most states requires you to buy some, but not all, of the above mentioned coverage. If you're financing a car, your lender may also have requirements.

Most automobile insurance coverage are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.

Why do you need auto insurance?
It's really all about protecting yourself financially

• If you're involved in a auto accident or if you car gets stolen, it costs money, often a lot of money, to fix or replace it.
• If you or your passengers are injured in an auto accident, medical costs can be extremely expensive.
• If you or your car is responsible for the damages or injury to others, you may be sued for much more than you're worth.
• Not only is having insurance a prudent financial decision, many states require you to have at least liability coverage

Questions to ask your automobile insurance agent?
Your Independent Agent is an advocate for finding the best automobile insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion:

• How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs, if an accident do occur)
• What is the insurance company's level of service and ability to pay claims?
• What discounts are available? (Ask about good driver, multiple policy, and student discounts)
• What's the procedure for filing and setting a claim? (Ask who to call and what happens after you file a claim)