Understanding Auto Insurance Basics Auto insurance is a crucial financial product that provides protection against losses resulting from vehicular accidents, theft, and other damages affecting your vehicle. Its primary purpose is to mitigate financial burdens associated with car ownership and operation. Understanding the basics of auto insurance involves familiarizing oneself with key concepts such as coverage types, premium calculation, and essential terminologies. There are several types of coverage available in auto insurance. The most common include liability coverage, which pays …
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