Automobile Insurance

4 Introduction to Auto Insurance Auto insurance helps pay for the injuries and damage that can happen when you own and drive a car or other motor vehicle. This brochure can help you compare policies and make informed decisions when you buy auto insurance. It can help you understand your auto policy. Your policy is a legal document, and it is important that you understand it. Your motor vehicle may be an auto, truck, van, motorcycle, or another kind of private passenger vehicle. California Law You must show financial responsibility for any vehicle that you own, in case of injury to other people or damage to their property. Most people show financial responsibility by buying auto liability insurance. California law states, “All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.” If you do not have auto liability insurance, you can be fined, your license may be suspended, and your vehicle could be impounded. Your Auto Policy Your auto insurance policy is a contract between you and your insurance company. It explains: • Your costs. • Your coverages—the different things your policy covers. • Your exclusions—the things your policy does not cover.

RkJQdWJsaXNoZXIy Mjk0ODI1