Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy. Car insurance is of great benefit as it covers anyone who’s driving your car with your consent and if you’re driving someone else’s car with their consent as it provides coverage for any damage suffered by the car and/or any bodily injury that you or a third party that has suffered harm from being in an accident with the vehicle you’re driving. It is important to have car insurance as it ensures that in the event of a mishap or an injury the monetary expenses won’t cause a hole in your pocket. The compensation as well as the damage repair and even medical costs will be covered by your car insurance.