An insurance policy, which actually is a legally binding contract between an insurance company and the person who buys the policy, can now be availed on a number of media. For those interested to apply for the protection of car insurance, it is also possible to avail it through the internet as online auto insurance and you can even seek advice from an online auto accident insurance attorney.

Online auto insurance is available in exchange for payment of a premium. The insurance company agrees to pay for certain types of loss or damage as specified by the insurance policy of the online auto insurance. When a tragedy or accident occurs which results to a loss that meets all of the requirements described by the terms of an insurance policy, the loss is said to be covered by that online auto insurance.

The purchase of online auto insurance is usually done voluntarily based on an individual’s need for safeguard and protection against what he forethought as risks of owning and driving a car. However, in some instances, a person or company may be obliged to avail a certain type of insurance, including online auto insurance. Online auto insurance gives you protection against the legal liability which could arise if you harm another person or damage another person's property with your car. Online auto insurance also pays the cost of your defense in case you are dragged into litigation. Online auto insurance is also one of the steps you could take to safeguard yourself from the other risks of owning a car may have.

However, all insurance policies including online auto insurance have exclusions and limitations on them. An “exclusion” is a statement or line in the insurance policy which describes an exemption to the situations covered by the insurance policy. This may be a condition or type of loss which cannot be covered by the insurance policy. For example, an online auto insurance policy may promise to pay for property damage or bodily injury for which a person with online auto insurance becomes legally responsible for because of a car mishap. The same online auto insurance policy may have "exclusions". It may provide no coverage if the injury is done on purpose or if the injury is caused by a person who uses a car with online auto insurance without permission from the rightful owner.

A limitation on an online auto insurance, as compared to an exclusion, is a provision found in some policies which is an exception to the general statement of coverage but is applicable only under certain circumstances or for a specified period of time. Unlike the exclusion which holds as long as the online auto insurance policy holds, a limitation may no longer be applicable after a certain period of time.