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DEFINITION of 'Warrant Coverage'. An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder's investment. Next Up.
Because fault states require the at-fault driver to compensate the injured party, each fault state has its own requisite minimum coverage amount. Generally, these coverage amounts are separated into three (3) basic categories: The coverage amount for each injured person. The coverage amount per accident.