Auto insurance can be very confusing when you are trying to determine what you need and don’t need. It can be as simple as just covering “the other car and/or person” or as detailed as protecting every financial risk you might have by owning or operating a vehicle. The levels of insurance you need are dependent on many factors including your assets, the value of your vehicle and the rules of your state. auto-car-insurance

Do you know what your auto insurance covers? No? Well, you’re not alone. Many people are unfamiliar with the various terms and coverage levels of their insurance plans. But it’s important for you to know this information. After all, you want to make sure that you have adequate insurance to cover any accident, don’t you? Read on for the most common types of auto insurance coverage.

Your auto insurance policy is a pages-long legal document that can be confusing. It is filled with legalized terms and restrictions that can make your eyes glaze over. However, in simple terms, an auto insurance policy defines what type of coverage you’ve purchased, how much money it will pay for an auto accident, and under what circumstances. (This information is listed in the terms, conditions, limitations, and exclusions sections of your policy.)Here is a summary of some of the information on your policy.