Car insurance safe guards people in the event of either damage or loss of an asset. A monthly premium is paid to the insurance company, who will pay out when a claim is lodged. The purpose of the insurance policy is to provide the policy holder with financial coverage for their vehicle, truck, motorcycle or minivan in the event of injury, loss or damage.
The way car insurance works is as follows:
Provided your insurance premium is up to date you will receive financial cover that is in accordance with the car insurance policy that you have purchased should the situation arise.
The most common claims made by policy holders are as follows:

Motor vehicle accidents happen every day on roads in the United Kingdom. When you are in a car accident your insurance policy will carry the financial burden on your behalf relieving you of the financial responsibility associated with motor accidents if you were not the cause of the accident. The best policy for this purpose is a third party insurance policy.
Natural disasters can occur without notice and your insurance policy will cover you in the event of vehicle damaged being obtained as a result of hailstorms, landslides and floods.
Criminal activity is a huge concern, statistics show that there is a motor vehicle related crime that takes place every 26 seconds in United Kingdom. Car related crimes include snatch and grabs, hijackings, theft and break-ins.
Almost every insurance company in South Africa will offer the policy holder a no claims bonus. A no claim bonus works on the basis that a certain percentage will be paid out to the policy holders as a lump sum after a pre-determined time had lapsed without any claims being made.