Auto insurance can assist in the payment of claims if you are involved in a car accident and injure or damage someone else’s property.
As well as in the repair or replacement of your vehicle in the event that it is stolen, vandalized, or damaged by a natural disaster.
People pay annual premiums to an auto insurance company rather than paying for damage and accidents out of pocket.
The covered costs of an auto accident or other vehicle damage are then covered by the company in full or in part.
Auto insurance is likely to be required by your lender or leasing dealership if you are leasing a vehicle or borrowing money to buy one.
If necessary, the lender may purchase insurance on your behalf, similar to homeowners insurance.
