PEACE OF MIND CAR INSURANCE?

Auto insurance is supposed to provide peace of mind. But the wrong policy can provide a false sense of security - and leave consumers in jeopardy of serious financial losses.

You have to know what you're buying, especially if you apply for a policy by phone, by mail or on the Internet. Some consumers assume they'll have adequate coverage as long as they buy state-mandated minimums. However, most states only require motorists to carry liability insurance, which pays for injuries you cause to another person or property damage you cause to someone's car.

If you want to protect your own car, you need to buy extra coverage. Collision pays for damage to your car when it hits another vehicle, rolls over or collides with an object, like a tree. Comprehensive protects you when such things as fire, theft, storms, floods or vandalism result in damage to your car.

Some lenders and leasing companies require collision and comprehensive as a condition for financing a car, so make sure you comply with the terms of your contract. [...]

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