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The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance

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The Emerson First National Bank is lending you money to buy a new car.The loan agreement will probably state that you must carry a collision insurance.

The correct answer is:

Full coverage insurance.

Explanation:

Generally, when you get an auto loan, the lien holder (the bank you get the loan through) requires that you carry full coverage insurance. This is so that they are covered in the event of any type of damage to your vehicle.