Personal auto insurance is your financial shield in the event of an accident. It’s a contractual agreement between you and the insurance company. When you pay the premium, the insurance company commits to covering your losses, as specified in your policy. Personal auto insurance encompasses property, liability, and medical coverage. Property coverage handles damages or theft of your vehicle, liability coverage addresses your legal responsibilities for injuries or property damage to others, and medical coverage takes care of injury treatment, rehabilitation, and, in some cases, lost wages and funeral expenses.