What Is General Auto Insurance?

General Auto Insurance is an auto insurance policy where you and an insurance company have an agreement which fill in a contract. Every month you pay a premium. In exchange, the insurance company will pay for exact financial losses, in the selected coverage restrictions, that you have during the agreement .

Most states need you to take automobile liability insurance in certain minimum quantities. If you cause an accident that the law requires you to pay damages to the person who has no guilt. These may include damage to property, which is the cost to repair or replace damaged property. These may also include damages for personal injury, including not only the medical expenses of the other person and loss of wages but also damages for suffering & pain, whole life-time injury, and loss of almost enjoyment of life. This damage can reach thousands of dollars, even for a small accident. This is why adequate insurance is essential for their economic health.