Most countries, such as the United Kingdom, require drivers to buy some, but not all, of these coverages. When a car is used as collateral for a loan the lender usually requires specific coverage.
Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as in a traffic collision.Coverage typically includes:
- Property coverage, for damage to or theft of the car;
- Liability coverage, for the legal responsibility to others for bodily injury or property damage;
- Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
