Auto insurance is insurance on automobiles, trucks, motorcycles, or other road-going vehicles. Its main function is to give financial coverage against bodily damage or personal injury resulting from vehicular accidents and from legal liability which can also arise out of car-crashes. Have a look at Auto Insurance for more info on this.The auto insurance coverage pays the costs for repairing the automobile and any medical expenses incurred by its drivers. This insurance coverage is mandatory in most countries. There are different types of auto insurance like general vehicle insurance, motorist insurance, vehicle registration insurance, medical insurance, breakdown recovery insurance, rental vehicle insurance, etc.
A General Auto Insurance covers all the financial loss in case of an accident. Personal injury coverage provides monetary support to those persons who get hurt due to the negligence of others. It also pays for all the medical and rehabilitation expenses incurred by the victims. Under the legal liability category, this insurance pays for damages that are caused due to accidents that happen on public roads or highways, etc. Breakdown recovery insurance provides monetary support to the persons who have met with an accident that has resulted in their vehicle being completely destroyed, even to the extent of replacing it.
The optional coverage provided under the automobile insurance is mainly designed to protect the interests of the insurer as well as the insured. Collision insurance provides coverage only in case of an accident. It does not cover any damage to the vehicle during normal operation. It is usually the responsibility of the insured to submit to the lender any information regarding repairs that need to be done. If the vehicle is stolen, then the lender may require the vehicle to be towed to a garage or may require the payment of an extra amount to cancel the liability of the insurer for such expenses.