| What is auto insurance? Auto insurance
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| | In the United States, liability insurance
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| (or car insurance, motor insurance) is
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| | covers claims against the policy holder
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| insurance consumers can purchase for
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| | and generally, any other operator of the
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| cars, trucks, and other vehicles. Its
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| | insured's vehicle, provided they do not
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| primary use is to provide protection
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| | live at the same address as the policy
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| against losses incurred. By buying auto
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| | holder and are not specifically excluded
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| insurance, depending on the type of
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| | on the policy. In the case of those
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| coverage purchased, the consumer may be
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| | living at the same address, they must
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| protected against:
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| | specifically be covered on the policy.
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| * The cost of repairing the vehicle
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| | Thus it is necessary for example, when a
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| following an accident
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| | family member comes of driving age they
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| * The cost of purchasing a new vehicle if
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| | must be added on to the policy. Liability
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| it is stolen or damaged beyond economic
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| | insurance generally does not protect the
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| repair
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| | policy holder if they operate any
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| * Legal liability claims against the
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| | vehicles other than their own. When you
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| driver or owner of the vehicle following
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| | drive a vehicle owned by another party,
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| the vehicle causing damage or injury to a
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| | you are covered under that party's
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| third party.
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| | policy. Non-owners policies may be
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| Liability insurance covers only the last
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| | offered that would cover an insured on
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| point, while comprehensive insurance
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| | any vehicle they drive. This coverage is
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| covers all three. Even comprehensive
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| | available only to those who do not own
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| insurance, however, doesn't fully cover
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| | their own vehicle.
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| the risk associated with buying a new
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| | Generally, liability coverage does extend
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| car. Due to the sharp decline in value
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| | when you rent a car. However, in most
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| immediately following purchase, there is
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| | cases only liability applies. Any
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| generally a period in which the remaining
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| | additional coverage, such as
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| car payments exceed the compensation the
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| | comprehensive policies, i.e. "full
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| insurer will pay for a "totaled"
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| | coverage" may not apply. Full coverage
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| (destroyed, or written-off) vehicle.
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| | premiums are based on, among other
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| So-called GAP insurance was established
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| | factors, the value of the insured's
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| in the early 1980's to provide protection
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| | vehicle. This coverage may not apply to
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| to consumers based upon buying and market
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| | rental cars because the insurance company
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| trends. The escalating price of cars,
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| | does not want to assume responsibility
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| extended term auto loans, and the
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| | for a claim greater than the value of the
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| increasing popularity of leasing gave
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| | insured's vehicle, assuming that a rental
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| birth to GAP protection. GAP waivers
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| | car may be worth more than the insured's
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| provide protection for consumers when a
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| | vehicle. Some states, such as Minnesota,
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| "gap" exists between the actual value of
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| | may require that it extend to rental
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| their vehicle and the amount of money
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| | cars. Most rental car companies offer
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| owed to the bank or leasing company. In
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| | insurance to cover damage to the rental
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| some countries including New Zealand and
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| | vehicle. In some regions, the costs
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| Australia market structures mean that
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| | associated with not having access to the
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| people are more likely to buy a nearly
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| | vehicle ("Loss of Use") is also covered.
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| new car than a new car so this is less of
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| | What is auto insurance?
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| a problem.
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