WHAT IS AUTO LIFE INSURANCE?

An auto insurance policy is a legally binding contract between an auto insurance company and the person who buys the policy. The buyer is called the "insured" or the "policyholder." In exchange for payment of a specified sum of money, called the "premium," the auto insurance company agrees to compensate the policy holder for certain types of loss or damage resulting from an automobile accident. When a loss occurs that meets all of the requirements described by the terms of an auto insurance policy, the loss is said to be "covered" by that insurance policy.