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Auto Insurance - How It Works Auto Insurance works similarly to heath, life, or other various forms of insurance. Auto insurance companies supply their customers with liability coverage that have certain amounts and limitations. The insured individual is then given a set payment, which is also known as a premium. These set payments can either be paid monthly or yearly; and they can greatly differ depending on factors such as age, sex, and driving history.Coverage for Auto InsuranceThere are a plethora of different types of coverage that are offered. If we broadly grouped them, we find two categories of coverage which include collision and comprehensive. In a nut shell, comprehensive coverage offers insurance liability coverage for expenditures involved with an accident, usually according to a specific set policy limit. Conversely, collision coverage is more restricted; and it doesn't cover as much as comprehensive coverage.Auto Insurance: TypesTwo major forms of auto insurance include no-fault and standard. No-fault is rare and coverage is provided equally without considering whose fault the accident was. In standard insurance, liability is distributed depending on...more
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