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(Redirected from Auto insurance)To meet Wikipedia's quality standards, this article or section may require cleanup. Please discuss this issue on the talk page, or replace this tag with a more specific message. Editing help is available. This article has been tagged since January 2006. An insurance company may declare a vehicle totally destroyed ('totaled' or 'a write-off') if it appears replacement would be cheaper than repair. (Photo used with kind permission of car-accidents. com. FirstPlus Exclusive,
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Vehicle insurance (or Auto insurance, car insurance, motor insurance) is insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents.

Coverage levels

Insurance can cover some or all of the following items:

The insured partyThe insured vehicleThird parties

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

Public policy

In many countries it is compulsory to purchase auto insurance before driving on public roads. In the United States, penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states.

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