- Property coverage, for damage to or theft of the car;
- Liability coverage, for the legal responsibility to others for bodily injury or property damage;
- Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as in a traffic collision.
Coverage typically includes:
Most countries, such as the United Kingdom, require drivers to buy some, but not all, of these coverages. When a car is used as collateral for a loan the lender usually requires specific coverage.