Motor insurance, also known as vehicle or auto insurance, is a policy that protects a vehicle owner from financial losses in the event of an accident, theft, or natural disaster. It’s an agreement between the vehicle owner and an insurance company, where the owner pays a premium and the insurance company covers the costs associated with repairs or replacements.
Types of insurance
Third Party Insurance
This is the most basic and mandatory type in many jurisdictions, covering the insured’s liability for damage or injury to a third party.
Comprehensive insurance
This provides broader coverage, including damage to the insured vehicle and its occupants, as well as third-party liabilities.
Own damage insurance
This covers damage to the insured vehicle itself, often offered as a standalone policy or as part of a comprehensive plan.