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Car Insurance: Definition

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In simple words, car insurance is an agreement between an owner of the vehicle and the insurance company, which states that The Owner agrees to pay a premium and The Company will pay off the losses in the specific cases. For now, you can learn about car insurance options here. Generally, such cases are clearly defined. So, you will be paid off a specific amount of money if:

  • the car was damaged or stolen;
  • it’s necessary to pay for your legal responsibility for different types of injury or damage caused by an accident;
  • medical costs.

In fact, you are assured by an insurance company to be paid money for some kinds of damaged caused to your vehicle and injuries caused by the collision. The specific thing about the vehicle insurance is that its terms differ depending on the region of the country. Therefore, revealing the original terms of the auto insurance is crucial.

A vehicle belay supposes that The Owner has to pay a premium, as it was said before. A premium is an amount of the sum, which covers a policy. There exist different types of the policy. Detailed information you can find further.

Tip: Find out how to save money on a car insurance.