Car insurance(redirected from automobile insurance)
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Car insurance covers theft of and damage to your car or damage that your car causes, plus liability protection in case you are sued as a result of an accident. Your state may require proof of insurance before you can register your car.
As a car owner, you pay premiums set by the insurance company based on the value of your car and the risk the company believes you pose. The insurance company agrees to cover your losses, subject to a deductible and the limits specified in the contract.
Some states have insurance pools that allow car owners who have been turned down elsewhere to obtain coverage.