Vehicle insurance (also called auto insurance or car insurance) is a kind of insurance that protects people if they have a car accident. Somebody with vehicle insurance would not have to pay the entire cost of damage a car accident causes. In many places, it is against the law to drive without vehicle insurance.

The bare minimum everyday driver should require to purchase a liability coverage. It varies from state to state and it is important to have the minimum amount as required by law. You can receive a ticket, have your driver license revoked, or even be arrested.

Liability is there to protect the other drivers on the road from the damages you cause.

Insurance prices vary a lot by the company. The car you drive can affect your auto insurance rates. If you get in a accident the repairs on the car may be different from others.

Somebody with vehicle insurance would pay what is called a premium (perhaps every month). The insurance company would decide how big the premium is, and might consider several factors. These include some of the following:

• Age
• Type of car
• Type of job
• Gender
• Home
• History of insurance
• Past accidents

When you pay a premium, the insurance company agrees to pay your losses as outlined in your policy. Depending on different factors, the insurance company may not pay all or any of your losses.