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What is auto insurance?

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What is auto insurance?

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Auto insurance is a legal agreement between you and the insurance company that in exchange for the premiums you pay the insurance company will pay for your covered losses (property, liability and medical expenses). The exact terms of the agreement, including types of losses covered and the amount of the coverage for each type of loss, is spelled out in your policy documents.

Most states require vehicle owners to have at least some form of auto insurance.
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