automobile insurance policy

An automobile insurance policy is a legal contract between you and an insurance company that provides financial protection against costs resulting from a vehicle-related incident. It typically covers damages or injuries you cause to others, your own vehicle, and sometimes your medical expenses. Premiums are the payments you make regularly to keep the coverage active. The policy includes specific terms, coverage limits, and exclusions, which define what is covered and to what extent. Having insurance ensures you're financially protected against unforeseen events on the road, helping you manage risks and avoid significant out-of-pocket expenses.