Saturday, January 20, 2007

Q : What is car insurance?

A : Car insurance is insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents. An insurance company may declare a vehicle totally destroyed ('totaled' or 'a write-off') if it appears replacement would be cheaper than repair. Recommend that car owner should make a car insurance because we do not know the future when the accident will happen.

Insurance can cover some or all of the following items:

  • The insured party
  • The insured vehicle
  • Third parties


Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

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