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Car insurance is a contract between a vehicle owner and an insurance company, where the insurer provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise. It’s essential for several reasons: it covers your expenses in the event of vehicle damage or injuries to other drivers, pedestrians, or passengers. Additionally, it’s a legal requirement in many regions, ensuring that all drivers can cover the costs of potential damages or injuries they cause.
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