coverages. This section also includes people covered by the policy, exclusions, and term definitions. INSURED: Everyone covered by the policy, which may include the policyholder, a significant other, teenagers or adult children, or roommates who drive the car owned by the policyholder. INTERNATIONAL AUTO INSURANCE: Required insurance if you rent a car outside the United States or Canada. You can usually get this through your own insurance company. LIABILITY: Coverage that pays the other party for accidents you cause. Includes bodily injury and property damage coverages. LIMIT: The maximum amount the company will pay for each type of insurance. (Note: If the costs go beyond this, you will have to pay out-of-pocket.) LOAN/LEASE PAYMENTS COVERAGE: Like gap insurance, it will cover you if your car gets totaled and you owe more than fair market value. The difference from gap insurance is that loan/lease payments coverage is set at a percentage of the car’s estimated value. MECHANICAL BREAKDOWN INSURANCE: Covers mechanical breakdowns. Similar to dealer warranties but tends to be cheaper.
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