Car Insurance
Car insurance is the most widely purchased property and liability insurance. It is one of the most important kinds of insurance because of the serious injuries and extensive property damage that can result from car accidents.
Drivers are legally responsible for any costs arising from accidents they cause. Car insurance protects a policyholder against financial losses from accidents. It also provides compensation if a policyholder's car is stolen, vandalized, or damaged in a collision or by storms or other natural perils. Benefits vary according to the type of policy, they can broadly be defined as one of two types:
- Third-party
- Comprehensive.
Third-party coverage:
Protects policyholders if a car accident for which they are responsible causes bodily injury to others or property damage. It is compulsory for all drivers in the United Kingdom and many other countries.
Comprehensive coverages:
Pays for losses resulting from damage to a policyholder's car or object as well as losses from such perils as fire, theft, flood, and hail. Nearly all comprehensive insurance has a deductible or excess.