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Auto Insurance and the Older CarMost states require car owners to have auto insurance with a minimum amount of liability coverage. This insures that victims of an auto accident will receive financial compensation for personal injury and damage to their car when the collision is caused by another driver. If your car is older and has low market value, you may choose not to purchase comprehensive or collision coverage from your car insurance company, since the cost to repair an older car can often be more than the car's market value.
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