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Car insurance is designed to provide protection against financial loss resulting from accidents, theft, or other unforeseen events. When it comes to new cars, most insurance policies offer coverage that mirrors what they would provide for older vehicles. This includes liability coverage, which pays for damages caused to others in an accident, and collision coverage, which covers repairs or replacement costs if the vehicle is damaged in a collision. However, the specifics can vary depending on the policy and the insurer.
Benefits of Annual Breakdown Cover
In summary, liability coverage is crucial for protecting against financial ruin if you cause an accident while driving someone else's vehicle. It helps cover the costs associated with injuries and property damage to others, ensuring that you are not personally responsible for these expenses.