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What is car insurance?

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Vehicle insurance

Car insurance is specific insurance acquired for cars or other road vehicles. It is also called vehicle insurance or auto insurance, but sometimes it's known as GAP or motor insurance.

Its function is primary to supply financial protection against any damage on car, mostly physical from traffic collisions. The specific rates of vehicle insurance could vary form state to state and region to region depending on regulations.

Vehicle insurance protects you against financial loss if you have an traffic accident. It's a contract between you as a car owner and the insurance company (covering the risk of damage). Most auto policies are for six months to a year.

You as an vehicle owner agree to pay the insurance premium and the insurance company agrees to pay your financial lose.

All the loses are defined in your insurance policy.

If someone damage or stole your car it is a Property coverage.

Collision coverage pays for damages to your vehicle caused by collision with another car or object.

If you injury someone or make property damage to it's vehicle Liability coverage pays for your legal responsibility.

Comprehensive coverage pays for damage to the insured auto that doesn't occur in an traffic accident including losses caused by fire, wind, hail, flood, vandalism or theft.

There is also Medical coverage and it pays for the cost of treating injuries, rehabilitation and sometimes lost wages and in worst cases - funeral expenses.

An vehicle insurance policy is consistance of all different kinds of coverage. The basic move when choosing the auto insurance you want for your car is to understand the law regulative in your country. Then you will know what is the minimum insurance you need for your vehicle. Most states require you to buy some of these coverages.




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