An auto insurance policy is a contract between a vehicle owner and an insurance company that provides financial protection against damage or loss to the vehicle, as well as liability for injuries or damage caused to others in the event of an accident.

The main components typically include:

Liability Coverage: Covers bodily injury and property damage to others if you're at fault in an accident.

Collision Coverage: Pays for repairs to your own vehicle if it's damaged in a collision, regardless of fault. Comprehensive Coverage: Covers non-collision damage to your vehicle, such as from theft, vandalism, or natural disasters.

Personal Injury Protection (PIP): Covers medical expenses for you and your passengers, regardless of fault.

Uninsured/Underinsured Motorist Coverage: Protects you if you're in an accident with a driver who doesn't have adequate insurance. The cost of the policy depends on factors like the type of coverage, your driving history, the car’s value, and location.