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This is somewhat complicated. Each state has laws designating minimal liability insurance. Liability insurance pays for the other vehicle if you were in an accident. Some states are "no fault" which basically means it doesnt matter who is At Fault each driver just takes care of the others.
This is the legal required insurance.
If you finance a new car the lender will most often require you have comprehensive coverage to cover the value of your car. This protects the money they lent you.
So you need to look up your state's liability requirements and possibly meet the lender's requirements as well.
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