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Auto insurance is a kind of insurance that helps you cover the costs resulting from a car accident or auto problem. Every state in the U.S. requires drivers to carry at least some auto insurance, although the exact amount varies by state.

There are two basic kinds of auto insurance: insurance that covers first party damage (which is damage to your car or injuries to people in your car) and insurance that covers third party damage (i.e., damage or injuries to another driver's car or passengers, or any property you damage in an accident which doesn't belong to you.) Most insurance policies contain both of these types of coverage.

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