Auto insurance can best be described as a combination of property and liability insurance in a single policy to protect families and individuals. Property is best defined as tangible or ‘real’ property and liability is any bodily harm you are responsible for in the event of an accident. A policy has one or more ‘Named Insureds’ (meaning the owner(s) of the policy) that are covered as well as any ‘Covered Autos’. Autos (or automobiles) would be any vehicles you have listed on the policy. However, less known, is that most insurance policies also cover trailers you own and include (without adding to the policy) limited coverage for any newly purchased vehicles within a specific time frame or any vehicles you may need to rent/borrow if one of your vehicles is down.

Fun fact: Travelers Insurance Company issued the very first auto insurance policy in the U.S. in 1898 to a doctor named Truman J. Martin of Buffalo, New York. That first policy gave Dr. Martin $5,000 in liability coverage and cost him $12.25.

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