Car insurance is financial protection against costs that may be incurred if your car is in an accident and/or is harmed in a way that would require a significant repair. It also protects you against damage you may cause to other vehicles (or people) if you cause an accident.
To get car insurance, you must buy a policy from an insurance company. The insurance company policy states what will be covered and for how much money. For example, if you have what is known as a comprehensive insurance policy, you will be covered for any damage that happens to your car in an accident, regardless of what or who caused the damage. Some policies, however, may be more limited and cover up to a pre-defined dollar amount of repairs.
It is also possible to have a liability policy only. In this type of policy, the damage to other drivers’ cars would be covered if you cause an accident, but the damage to your own vehicle would not be covered.
You can purchase car insurance, also known as auto insurance, directly from an insurance company, or you can use an insurance broker, who will take your information and attempt to find you the best and hopefully cheapest policy for your needs. Some of the larger car insurance companies offering policies include Progressive, Allstate, State Farm, GEICO, Nationwide, Liberty Mutual, Farmers, Amica and more.