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A person buys insurance to beat monetary losses regarding auto accidents, damages, thefts, etc. arising for self or to the third-party. Rather than paying from one's own pocket for such auto eventualities, one prefers paying annual premiums to the auto insurance firm, that successively takes liability for all or most of the prices such as an auto accident or the other injury, stealing or loss etc., together with third-party liability.
Most of the state governments have mandated to buy a minimum quantity of auto insurance cover. However, the insurance premiums vary taking under consideration numerous factors just like the individual's age, gender, driving expertise and record, significantly accidents and traffic violation history etc.