Car insurance is a contract between you and an insurance company that protects you financially if you’re in an accident, your car is damaged, or you’re liable for damage to others.
ЁЯФС Main Types of Car Insurance Coverage
1. Liability Insurance (usually required by law)
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Bodily Injury Liability: Covers injuries to others if you’re at fault.
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Property Damage Liability: Covers damage you cause to another personтАЩs vehicle or property.
2. Collision Coverage
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Pays for damage to your car from a crash, regardless of who’s at fault.
3. Comprehensive Coverage
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Covers non-collision damage (theft, vandalism, fire, natural disasters, falling objects, etc.).
4. Personal Injury Protection (PIP) / Medical Payments
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Pays for medical expenses for you and your passengers after an accident.
5. Uninsured/Underinsured Motorist Coverage
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Helps if you’re hit by someone with no insurance or not enough insurance.
ЁЯТ░ Factors That Affect Your Car Insurance Cost
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Age and driving experience
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Driving record (accidents, violations)
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Type of car
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Location
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Coverage level
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Credit score (in some countries)
ЁЯУЬ Is Car Insurance Required?
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Yes, in most countries/states. At least liability coverage is usually mandatory.
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Some places require PIP or uninsured motorist coverage too.
ЁЯз╛ When You Need Car Insurance
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Buying a car
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Leasing or financing a vehicle (lenders usually require full coverage)
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Registering a vehicle
Would you like help:
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Choosing the right car insurance?
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Comparing quotes?
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Understanding insurance terms in your country or state?