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Whether you’re doubting your insurance policy or are simply curious as to why it’s necessary, it’s helpful to know what you’re paying for. Aside from being mandated in most states, car insurance is a good investment because it protects you and your net worth.
Insurance may feel like you are getting swindled sometimes, but it really does keep the wheels of society turning. It cultivates peace of mind, protects livelihoods, and keeps our courtrooms clear.
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outline in your policy.
Auto insurance provides coverage for:
Policies are generally issued for six-month or one-year timeframes and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.
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