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Auto Insurance (also known as car insurance, truck insurance, or even motorcycle insurance or motor insurance) is insurance purchased for cars, trucks, and other vehicles. It’s primary use is to provide protection against losses incurred as a result of traffic accidents, theft, damage, and against liability that could be incurred in an accident.

• Public policy
• Coverage levels
• Excess
• Basis of premium charges
• Coverage Available

In almost all jurisdictions it is illegal to drive a vehicle that is uninsured. Further, there are certain minimums of coverage that must be met. The range of coverage is broad and policies can be combined with other forms of coverage, like Homeowners Insurance and Umbrella Liability Insurance. There are policy types for both businesses and individuals.

Coverage Available

The consumer may be protected with different coverage types depending on what coverage the insured purchases. Most states require that motorists carry minimum levels of auto insurance coverage in order to ensure that its drivers can cover the cost of damages to people or property(real, personal, and otherwise) in the event of an automobile accident. However, very few (if any) states require that an owner cover replacement cost of his own vehicle. However, if there is a lien on the vehicle do to a car loan, the lien holder will most likely require such coverage.

In the United States, liability insurance usually covers claims against the policy holder and any other operator of the insured vehicles, provided that they are a covered driver and not excluded. Because exclusions can apply you should never assume that anyone who is not specifically listed as an insured driver of the vehicle is covered. For example, In the case of those living at the same address, they must usually be specifically covered on the policy and each of these drivers will need to carry proof of insurance while driving the vehicle.

Many policies will extend coverage to rented cars. Make sure to check your description of coverage or contact your insurance agent before assuming this. Comprehensive policies (sometimes referred to as "full coverage") can also apply to a rental vehicle, although this should be verified. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. The more valuable the vehicle, the more this coverage usually costs.