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Car Insurance 101: What Your Policy Should Cover

Car loans are often accompanied by a contract that outlines the terms of the loan.

Liability insurance is a type of car insurance that covers damage to other people"s property in the event of an accident.

Car insurance may be required by law in some states or countries.

Car loans can be used to purchase both new and used cars.

Car insurance policies may require individuals to carry a minimum amount of liability insurance based on the laws in their state.

Car insurance deductibles are the amount that the insured individual must pay before insurance coverage kicks in.

Car insurance companies may offer discounts for things like safe driving or multiple cars insured under the same policy.

Car loans are often used to purchase new or used vehicles.

A higher deductible typically results in a lower monthly insurance premium.

Car insurance companies may deny claims if the insured individual was driving under the influence of drugs or alcohol.

Car insurance can also cover medical expenses and liability in case of injury or death.

The amount of a car loan is typically determined by the value of the car being purchased.

Car insurance companies may offer discounts to individuals with good credit scores.

Uninsured motorist coverage protects against damages caused by a driver who does not have insurance.

Car insurance may also provide coverage for rental cars and other vehicles.

Underinsured motorist insurance is a type of car insurance that provides coverage in the event that the other driver in an accident has insufficient insurance coverage.

Underinsured motorist coverage protects against damages caused by a driver who has insufficient insurance coverage.

Car insurance companies may require individuals to provide proof of insurance when registering their vehicle with the state.

Car insurance premiums can be paid in full or in installments.

An unsecured car loan does not require collateral, but may come with higher interest rates.