Car insurance is a type of insurance policy that provides financial protection against damages or loss resulting from a car accident or theft. It is a contract between an individual or entity, also known as the policyholder, and an insurance company, where the policyholder pays a premium in exchange for coverage for various types of losses or damages.
There are different types of car insurance coverage available, including liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, personal injury protection (PIP), and medical payments coverage. Each type of coverage provides different types of protection for the policyholder and their vehicle.
Car insurance is mandatory in many countries, and the coverage requirements may vary depending on the jurisdiction. In addition to the required minimum coverage, policyholders can also purchase additional coverage to increase their protection.
When purchasing car insurance, it is important to shop around and compare policies from different providers to find the best coverage and rates. It is also important to review the policy carefully and understand the terms and conditions, including the deductible and any exclusions or limitations.