What Car Insurance Options Do I Really Need?
Different types of car insurance policies allow a car owner to choose only what she needs. Although many types of coverage exist, you do not need to purchase certain types of car insurance policies for every car.
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Bodily Injury Liability
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U.S. law requires that you carry bodily injury car insurance to pay for injuries to other people caused by your car in an accident.
Property Damage Liability
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U.S. law also requires to you have property damage car insurance to pay for property damage caused by your car in an accident.
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Collision
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Lenders can require collision car insurance when you finance an automobile, but the law does not require it. This coverage pays for damage to your vehicle when a collision occurs.
Comprehensive
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Lenders can require comprehensive car insurance when you finance an automobile, but the law does not require it. Comprehensive insurance covers damage that occurs in some way other than an auto collision (theft, for example).
Uninsured Motorist
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Uninsured motorist car insurance offers protection for your car, as well as for you and your passengers, when you are involved in an accident with an uninsured motorist. The law and lenders do not require this coverage, so only carry it when you do not have adequate collision insurance to cover your car--or health insurance to pay for medical expenses if an accident occurs.
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