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​In the simplest terms, Car Insurance is a financial protection against unforeseen events such as an accident or theft. When you buy Car Insurance, you agree to pay a certain amount as premium​ to your Insurance Company, while the Insurance Company agrees to cover your financial loss in case of damage or theft of your car.

In other words, you are protected against damages or theft of your car when you buy a Car Insurance policy. The cover level of the motor policy​ can be for the insured, insured vehicle and third parties (vehicles and people)
Car Insurance offers you protection against the following losses:
• Damages or loss of your vehicle
• Injuries to others
• Your own medical expenses(in case of an accident)

A car insurance premium is dependent on a various factors such as make-model, age and value of your car, coverage opted etc.
Most importantly, Car Insurance is mandatory in most countries. However, the compulsory coverage may vary from country to country.