Auto insurance protects you against financial loss if you have an accident. It is a contractual agreement between you and the insurance company.
Auto insurance provides property, liability and medical coverage:
An auto insurance policy contains 7 different types of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have certain coverage requirements.
Your auto policy may include all coverages or some of them. Each coverage is priced separately.