Auto or car insurance coverage has two parts.The first part of auto insurance covers the car itself: comprehensive coverage reimburses losses from fire, theft or other perils. Collision coverage pays to repair losses caused by an accident. Often this coverage is mandated by financial institutions when you lease or purchase a vehicle. Additional coverages which are normally available are medical, car rental and full glass coverage, which vary by state.

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The second is the liability section of the policy. It covers your financial responsibility for injuring others or causing property damage. Some liability coverage is required by most states.