Car insurance explained - What you need to know

Car insurance is a type of insurance policy designed to financially protect vehicle owners in the event of an accident, theft, or damage to their vehicle. It typically includes liability coverage, which pays for damages or injuries that you cause to another person or their property while operating your vehicle, and collision coverage, which pays for repairs to your own vehicle if you are involved in an accident. Comprehensive coverage, which covers damage to your vehicle from events such as theft, fire, or natural disasters, is also available. It’s mandatory by law to have car insurance in most countries. Car insurance rates can vary depending on factors such as the type of vehicle, driving history, location, and coverage level.