Auto insurance, also known as car insurance or vehicle insurance in many countries is basically an insurance that is purchased for various road vehicles such as cars, trucks and other four wheelers. The main aim of taking this insurance is to get financial protection against any kind of liability that arises due to damage caused to the vehicle in a collision or road accident or damage cause by it to a person or other car. In many countries, the state jurisdiction mandates car owners to get auto insurance before they take their vehicle on the road. Failure to do so could cost them dearly in the form of penalty.

A number of countries tried their hand at the "pay-as-you-drive" insurance plan. As per this auto insurance scheme, the insurance payment is made through a gasoline tax imposed by the governing body. This scheme was initiated with the aim to tackle the issue of uninsured motorists and to bring a degree of parity between premium charged and miles driven by him. Moreover, this system was also expected to aid in increasing the efficiency of insurance by way of streamlining collection. However, given the complex nature of this plan, most countries now simply require motorists to have an auto insurance that covers liability for injuries and damage to property caused by an accident involving the car.

The auto insurance laws enforced in most parts of the world require both the vehicle and the driver to be covered. However, the minimum coverage requirement for both can vary slightly from one nation to another. In fact, the auto insurance legislations followed in the United States of America also differ to some extent from one state to another. In order to make sure that your auto insurance covers all the minimum policy requirements as dictated by the nodal insurance legislative body in your state, you should take the time to go through the same.

In case you feel lost while going through various insurance terminologies, you can always hire the services of an expert insurance consultant who has years of experience. His knowledge of the inner workings of the industry can help you get a good deal from the insurance company and make sure that you get all the coverage that you require at the best possible price. He can also tell you about all the discounts that you qualify for while taking auto insurance and can thus help you save a few bucks in the process.

The cost of auto insurance or its premium amount depends on several factors. These include the model of the car, the age, gender and marital status of the driver, his or her driving record and credit rating and the place that he or she lives in. The more expensive the car, the higher will be the insurance premium charged. The amount of auto insurance premium can be reduced substantially by installing car safety and anti theft devices and by parking it overnight in a garage. The coverage levels that you opt for will also play a vital role in determining your premium amount.