Understanding auto insurance - the basics

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Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.

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Auto insurance provides coverage for:

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• Property - such as damage to or theft of your car

• Liability - your legal responsibility to others for bodily injury or property damage

• Medical - those cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses 

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Basic Personal auto insurance is mandated by most U.S. states, and laws vary. Auto insurance coverages are priced individually to let you customize coverage amounts to suit your exact needs and budget.