What is auto insurance?
Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions. Get auto insurance quote here
Vehicle insurance can cover some or all of the following items
Property coverage, for damage to or theft of the car
Liability coverage, for the legal responsibility to others for bodily injury or property damage
Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses, The insured party (medical payments)
The insured vehicle (physical damage)
Third parties (car and people, property damage and bodily injury)
Third party, fire and theft
The cost to rent a vehicle if yours is damaged.
The cost to tow your vehicle to a repair facility.
Accidents involving uninsured motorists.
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.
An excess payment, also known as a deductible, is a fixed contribution that must be paid each time a car is repaired with the charges billed to an automotive insurance policy. Normally this payment is made directly to the accident repair "garage" (the term "garage" refers to an establishment where vehicles are serviced and repaired) when the owner collects the car. If one's car is declared to be a "write off" (or "totalled"), then the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to the owner.
If the accident was the other driver's fault, and this fault is accepted by the third party's insurer, then the vehicle owner may be able to reclaim the excess payment from the other person's insurance company.