Auto Insurance: It is a contract between two parties of which is the insurer, and the other one is insured. An insurer is a person who agrees to pay the insured in any unforeseen circumstances like accidents, thefts, property damage, etc. In case of auto insurance, the insurance company takes the responsibility of all the damages which are done to the holder of the auto or the auto, but it does not take the responsibility of any legal damage to the insured.