Insurance

Insurance is a protection you buy for your vehicles that protects other drivers from damage caused by your vehicle, no matter who is driving. Insurance is required by law in order to drive a vehicle. If you are in an accident or pulled over for a traffic violation, and are found to be without insurance, you will have to pay a hefty fine.

There are different types of automotive insurance on the market today. The most common, and cheapest, form of automotive insurance is liability coverage. Liability coverage covers damage to other people or their property should you be in an automotive accident. It does not cover anything on your vehicle. Collision coverage covers damage to your vehicle from another car. Comprehensive coverage covers damage to your car by anything other than another car. Comprehensive coverage includes theft and vandalism coverage. If your car is under a car loan, you will be required to have comprehensive coverage on it.

More Glossary Terms Explained here

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