What is Auto Insurance?
An auto insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific car-related financial losses during the term of the policy.

Why do I need it?
In some states, to drive (get license plates) you must carry:

• Liability coverage to pay for losses you cause others, or
• No-Fault coverage to pay you and your passengers for medical and
  related expenses caused by injuries from a car accident, regardless
  of fault, or
• Both coverages

Even in states where coverage isn't required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for vehicle damage usually is necessary to finance a car.

Without insurance, you risk paying for full cost of:

• Any harm you cause others, or
• Repairing or replacing your car if it's damaged or stolen