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auto insurance is to protect natural or legal person against financial losses. Financial loss can occur in many different ways in connection with vehicles, and most auto insurance agree to the natural or legal person from the insurance against property damage, medical coverage and liability damages. For example, many car insurance for:

Acquisition of property, and sometimes even theft and accidents
Medical care in the event that you are insensitive in a vehicle accident. Many strategies for the treatment of immediate injuries, some measures of reporting for rehabilitation or even lost wages and funeral expenses.
Liability Coverage for damage. Legal liability coverage for damage done to other persons or property.

Car insurance is essentially a contract between you and your insurance company. You pay a premium at a regular interval and the insured is legally responsible for damage that your policy covers.

There are many different types of actions, and it should be noted that the vast majority of state governments a person or entity to acquire at least basic auto insurance, in order for the operation of certain vehicles on public roads. In many cases, if you have a vehicle that is not insured, you may revoke your license and pay large fines. Some of the most popular options for auto insurance coverage available;

Collision-this type of coverage protects your vehicle from damage caused by an accident with another vehicle or with other objects on the road. If your vehicle is in a car accident, the insurance pays for repairs, or if the car is a total to cover the damage to the car's worth.

Full-this type of coverage protects your vehicle from damage caused by things other than a collision. For example, if the radio was stolen and the burglar broke the window and destroyed the dashboard, the car insurance for your losses or remedy the damage.

Policies are usually for 6 months or a year and the rate that you want for your premium depends on many variables, including type of coverage, age, type of vehicle, place of residence and your vehicle. There are many other variables that might be considered, but any type of insurance has its own formula for calculating the cost of the policy.

Connie Barker is the owner of several financial websites including those dealing with car insurance