P6 (ATX-UK) Smart Notes - by Aziz ur Rehman
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Car insurance is a type of insurance that provides financial protection for drivers in the event of a car accident or other type of loss involving a vehicle. It can cover a wide range of losses, including damage to the vehicle, medical expenses for the driver and passengers, and liability for any damages or injuries caused to other people or property. 

In most places, it is required by law to have car insurance if you own and operate a vehicle. The amount and type of coverage you need may vary depending on your circumstances, such as the value of your car, your driving history, and your personal assets. 

Car insurance premiums are typically based on a variety of factors, including the type of car you drive, your age and driving history, and where you live. Higher-risk drivers, such as those with a history of accidents or traffic violations, may pay higher premiums. 

There are several types of car insurance coverage to consider, including liability coverage, collision coverage, and comprehensive coverage. Liability coverage protects you from financial responsibility for damages or injuries that you cause to other people or property in an accident. Collision coverage covers damages to your own vehicle in the event of an accident. Comprehensive coverage covers damages to your vehicle that are not the result of a collision, such as theft, natural disasters, or vandalism.