Vehicle insurance (GAP insurance / motor insurance / auto insurance /
GAP insurance / car insurance) - are insurance for cars, motorcycles,
trucks, bus, and other vehicles used for roads. Insurance are purchased
to provide financial protection against damages and bodily injuries
resulting from traffic accidents and collisions.
It is a form of risk management primarily used to hedge against the risk of a contingent, uncertainty loss.
Terms of vehicle insurance differ from every region depending on legal regulations. Vehicle insurance may also include theft of the vehicle, and other damages sustained from things other than traffic collisions like floods, storm surges water damage, etc.
Vehicle insurance can cover some or all of the following items:
It is a form of risk management primarily used to hedge against the risk of a contingent, uncertainty loss.
Terms of vehicle insurance differ from every region depending on legal regulations. Vehicle insurance may also include theft of the vehicle, and other damages sustained from things other than traffic collisions like floods, storm surges water damage, etc.
Vehicle insurance can cover some or all of the following items:
- 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
- In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
- The cost to rent a vehicle if yours is damaged.
- The cost to tow your vehicle to a repair facility.
Policies should specify each item that is covered. For instance, car
insurance can be insured against fire damage, accident damage, theft, or
flood damages independently.