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Vehicle insurance (or auto insurance, car insurance, motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents
Coverage levels
Insurance can cover some or all of the following items:
- The insured party
- The insured vehicle
- 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.
An excess payment, also known as a is the fixed
contribution you must pay each time your car is repaired through
your car insurance policy. Normally the payment is made directly to
the accident repair garage when you collect the car. If your car is
declared to be a write off, your insurance company will deduct the
excess agreed on the policy from the settlement payment it makes to
you.
If the accident was the other driver's fault, and this is
accepted by the third party's insurer, you'll be able to reclaim
your excess payment from the other person's insurance company. If
the other driver is uninsured, a policy's minimum limits include
coverage for the uninsured/underinsured motorist(s) at fault.
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