Automobile Insurance

Published: | Updated: January 16, 2017

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Definition - What does Automobile Insurance mean?

Automobile insurance is a contract between a vehicle owner and an automobile insurance company that transfers the risk associated with owning and operating a car to the latter. Rather than paying for these costs themselves, policyholders pay a premium to have most or all of such expenses covered.

Insuranceopedia explains Automobile Insurance

It is compulsory to purchase automobile insurance in most states, and the premium depends on such factors as the vehicle owner's driving records, their gender and age, the kind of car, and the amount of desired coverage. Automobile insurance policies usually include comprehensive coverage, which covers damages caused by events other than a vehicle collision; liability coverage, which covers the bodily injury, damage to property; towing and labor; and collision coverage.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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