Financial security is designed to protect everyone on the road-and their vehicles-from injury or harm. Also guards the insured against financial obligation or lawsuit in the event they cause an accident.
Car insurance coverage includes three broad categories of damage designed to protect policyholders from a loss:
- Property: Pays for damage to or theft of your car
- Liability: Covers others against bodily injury or property damage
- Medical Pays the cost of treatment, rehabilitation, and sometimes lost wages and funeral expenses due to an accident.
Though each state determines its own car insurance coverage requirements, drivers in every state must prove some type of insurance to drive. To determine what car insurance coverage a particular state requires, check with the Insurance Information Institute at III.org or speak with a local car insurance agent.