Car Insurance

Vehicle insurance (or auto insurance, car insurance, motor insurance) is insurance people 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.

Coverage levels

Insurance can cover some or all of the following items:

1. The insured party
2. The insured vehicle
3. 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.