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Car Insurance: What is It?

Written by Todd Clay. Posted in Definitions Last Updated: 10/05/2010

Most US and Canadian drivers know they need car insurance, but what exactly is it? Simply put, car insurance is a financial protection used to cover losses caused by auto accidents and other vehicle-related mishaps. Without auto insurance, people would have to pay for these losses themselves. That could easily bankrupt most drivers on the road in a serious accident. Car insurance protects your financial assets by covering physical damage and bodily injuries for auto-related incidents.

Car Insurance: What is It?

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He's worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook.

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