Auto Insurance is a type of Insurance which provides cover against any damage to automobiles. Car Insurance or Motor Insurance is the most common form of auto insurance. In most countries, auto insurance is compulsory to take a vehicle on the roads – this is to offer protection against damages to third party in an accident, rather than to offer protection to the driver or his insured car. The latter is optional. Thus, depending upon coverage levels, you can have many types of Insurance:
Comprehensive Coverage (insures against the cost of purchasing a new vehicle if it is stolen or destroyed in a fire), Collision coverage(insures against the cost of repairing the vehicle following an accident, or the cost of purchasing a new vehicle if it is damaged in an accident beyond economic repair), Personal Injury Protection (PIP - insures against the cost of medical expenses and lost wages related to the use, ownership or maintenance of a motor vehicle - mandatory in some U.S. states), Medical Payments (MP - insures against the cost of medical expenses for bodily injury sustained in an accident beyond any expenses that may be covered by PIP), and legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party. Liability insurance covers only the last point, while comprehensive insurance covers all three.
When it comes to insurance premium, rates depend upon controllable and some uncontrollable factors. Wikipedia gives a brilliant example “Statistically, a sixteen-year old boy with a 300 horsepower sports car in a big city is far more likely to hit something than a 35 year-old married guy driving a minivan around the suburbs.”
This section of the webdirectory provides links to all types of Insurers providing all types of covers, across the world.