Auto insurance (also known as vehicle insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
In many jurisdictions it is compulsory to have Auto insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate Auto Insurance to both the car and the driver, however the degree of each varies greatly.
Auto insurance can cover some or all of the following items:
The insured party
The insured vehicle
Third parties (car and people)
Third party, fire and theft
In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently