Auto insurance is one of the most commonly purchased insurance types globally, and for good reason. It protects drivers against the financial consequences of vehicle accidents, theft, vandalism, and liability claims. With millions of cars on the road daily, the risk of incidents is ever-present, making auto insurance not just a legal requirement in many places, but a practical necessity.
Auto insurance policies typically include:
- Liability Coverage: Covers injury or damage caused to others in an accident.
- Collision Coverage: Pays for damages to the policyholder’s vehicle due to a collision.
- Comprehensive Coverage: Protects against non-collision events such as theft, natural disasters, or vandalism.
- Uninsured/Underinsured Motorist Coverage: Provides protection if the at-fault driver lacks adequate insurance.
With the rise of ride-sharing platforms and autonomous vehicles, auto insurance is evolving rapidly. Usage-based insurance, where premiums are based on driving behavior and mileage, is gaining popularity.
Major auto insurance companies:
- GEICO (USA) – Known for its affordability and customer service.
- Progressive (USA) – A pioneer in usage-based insurance models.
- Allstate (USA) – Offers comprehensive policies with innovative digital tools.
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