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The purpose of car insurance is to shield you from monetary losses in the event that you are in an accident or that your car sustains damage. The majority of states mandate that you carry minimum levels of liability insurance; some additionally mandate that you carry additional coverage, such uninsured motorist coverage.
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The risk that the insurer is taking on determines how much car insurance costs. The risk that the provider is assuming and, thus, the amount of your car insurance premiums, can be influenced by a number of factors, including your age, driving history, home address, and whether your car is parked on the street or in a garage.
As far as auto insurance is concerned, you get what you pay for. It seems sense that a very basic policy, such as CTP, will be less expensive than a Comprehensive Policy. In general, an insurance policy will cost more the more it covers. For instance, because it contains additional coverage, Third Party Property and Theft often costs more than Third Party Property.
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