Your automobile is like a second home. You are in it for long periods of time. You travel to your work place; you go for outings, visits, sightseeing and the like. Anything can happen while you are driving. You may be in an accident even if you are not at fault. But the result will be that your auto is damaged and you have to pay for its repair. Or you may get physically hurt in the process and need money for settling the medical bills.

You should therefore buy auto insurance. Most auto sellers insist that you buy auto insurance and you have to buy it at the time of buying your vehicle. Some companies may not allow you to buy a vehicle unless you buy insurance. Each country, every state has its own rules and regulations but vehicles have to be insured and that is a universal rule.

You can buy auto insurance for your vehicle after the insurer satisfies himself about the vehicle and the amount for which it is to be insured. This varies depending upon the make of the automobile, its age and its condition. You should satisfy yourself that you are happy with the terms before you sign on the dotted line. In return you have to pay a fixed premium at fixed intervals over a fixed number of years. These premiums also vary. Male drivers have to pay more than women drivers. Women drivers are considered safe drivers and they use the automobile less than their male counterparts. Senior citizens may get a concession. Married people also can avail of a concession. Younger students may have to pay more unless they show proof of exemplary driving behavior.

If anything happens to your vehicle you can put in a claim. The insurers will assess the damage and decide whether to settle the claim in full or in part. In Canada basic auto insurance is mandatory. There is also a public auto insurance system. Accident benefit coverage is compulsory there. In the United States the rules vary from state to state but buying auto insurance is compulsory. If a person does not have auto insurance and he has an automobile even if he is not driving it, he will have to pay a penalty which is pretty stiff.

Generally the auto insurance covers the insured vehicle, the insured person and the third party. Besides accidents, the insurance covers theft, damage and fire also. If you buy the auto insurance when you are buying the vehicle there will be no problem at all. It is for you own good that such rules have been made.