Auto or Vehicle insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.

 

Auto insurance provides coverage for:-

Property – such as damage to or theft of your car.

Liability – your legal responsibility to others for bodily injury or property damage.

Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Source:III & Cars2bike