Insurance that provides protection or indemnification against losses to the motor vehicles covered.  The insurance comes in various forms.  The term automobile or auto insurance is most commonly used to describe the mandatory and optional coverages required by each state’s Department of Motor Vehicles (aka DMV.)

The mandatory component, or liability coverage, protects the insured against claims or liabilities that may arise as a result of bodily or property damages where the insured has been found “at fault.”  Auto or car insurance can also be purchased to protect the insured’s automobile in the event of physicals damages.  Physical Damage coverage or PD provides car owners an insurance vehicle that will protect comprehensive risks (such as weather, animals, etc.), collision (“at fault” accident, damage due to striking another object) or both.

A separate and different form of insurance that at times may be referred to as automobile insurance is a warranty.  New and occasionally used vehicles can be purchased with a limited warranty that provides protection against product defects.