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Auto insurance protects you against financial loss if you met with an accident. It is a contract between you and your insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical insurance.

Auto insurance policy includes six different kinds of coverage. In most states require you to buy some, but not all of these coverages. Most auto policies are for six months to a year. Your insurance company should notify you by email when it is time to renew the policy and pay the premium.

In most states, it is mandatory that drivers have at least the minimum coverage auto insurance, it is important to understand the minimum system requirements of your country. But many drivers choose more than the minimum requirements for coverage to protect themselves more.

If you are responsible for causing an accident to other vehicles, your insurance will usually cover the cost of repairs, legal fees, and health insurance for those who have suffered as a result of the incident. Insurance policies also cover the costs when your car is stolen or vandalized.

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