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Automative Insurance:

Automotive insurance, in the United States and elsewhere, is designed to absorb most of the risk of financial liability or loss a motor vehicle owner may face if their vehicle is involved in a collision resulting in property or physical damages. All states require a motor vehicle owner to carry some minimum level of insurance, except for Virginia, where uninsured vehicles must be paid for directly to the state. In these states, automotive insurance is said to be compulsory. The insurance premium a motor vehicle owner pays is usually determined by a variety of factors including the type of covered vehicle, the age and gender of any covered drivers, their driving history, and the location where the vehicle is primarily driven and stored. Many insurance companies offer premium discounts based on these factors. Insurance companies provide a motor vehicle owner with an insurance card for the particular coverage term which is to be kept in the vehicle in the event of a traffic collision as proof of insurance.


Coverage Generally Covers:

Consumers may be protected by different levels of coverage depending on which insurance policy they purchase. Some states require drivers to carry at least liability insurance coverage to ensure that their drivers can cover the cost of damage to other people or property in the event of an accident. 

In the United States, automotive liability insurance covers claims against the policy holder and usually any other operator of an insured vehicle; provided they do not live at the same address as the policy holder and are not specifically excluded on the policy. Drivers living at the same address must specifically be covered on the policy. 


Source: Wikipedia