Auto insurance is a contract between the policyholder and the insurance company. The policyholder agrees to pay the premium and the insurance company agrees to pay losses as defined in the policy. Auto insurance provides property, liability and medical coverage: Property coverage pays for damage to, or theft of, the car. Liability coverage pays for the policyholder’s legal responsibility to others for bodily injury or property damage. Medical coverage pays for the cost of treating injuries,...| III
The National Highway Traffic Safety Administration (NHTSA) defines aggressive driving as, “the operation of a motor vehicle in a manner that endangers or is likely to endanger persons or property.”| www.iii.org
The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.| www.iii.org
Uninsured and underinsured motorist coverage reimburses policyholders in an accident involving an uninsured, underinsured or hit-and-run driver. Twenty states and the District of Columbia have mandatory requirements for uninsured or underinsured motorist coverage. More than half of the states have passed laws and begun to develop and implement online auto insurance verification systems to identify uninsured motorists.| www.iii.org
