Auto insurance

Vehicle insurance covers cars, trucks, motorbikes, and other types of road vehicles. It is often referred to as auto insurance, motor insurance, or car insurance. Its main purpose is to offer financial protection against bodily harm or physical damage sustained in auto accidents, as well as against any responsibility resulting from such situations. In addition to providing financial protection against theft, vehicle insurance may also cover damage to the vehicle resulting from non-traffic-related incidents including keying, weather-related or natural disasters, and collisions with stationary objects. The exact conditions of auto insurance differ depending on local laws in every area.

Governmental regulations

Vehicle insurance is required in many jurisdictions before a motor vehicle can be used or kept on a public road. The majority of jurisdictions link insurance to the vehicle and the driver, however the extent of both varies substantially. A “pay-as-you-drive” insurance plan that makes use of either a tracking device in the car or vehicle diagnostics has been tested in a number of jurisdictions. This could help with the problem of uninsured drivers by giving them more options and charging according to distance traveled, which could theoretically improve insurance efficiency by streamlining collection.


Every Australian state has a different Compulsory Third-Party (CTP) insurance program. In a car accident, CTP only pays for personal injury liability. Insurance for fire and theft as well as comprehensive and third-party property damage are offered separately.

  • Damages to other people’s cars, the insured vehicle, and other third-party property are all covered under comprehensive insurance.
  • The insured car is not covered by third-party property damage insurance, but damage to other people’s automobiles and property is.
  • The covered car is protected against theft and fire by third-party property damage insurance, which also covers damage to other people’s vehicles and property.

Third-Party Insurance That Is Required

Every Australian state requires CTP insurance, which is paid for at the time a vehicle is registered. It protects the owner of the vehicle and the driver against lawsuits alleging they are liable for death or personal injury to others brought on by their negligence. Any type of physical harm, bodily injuries, and the expense of all appropriate medical care for injuries sustained in the collision, as well as lost wages, the price of care services, and, in some situations, compensation for pain and suffering, may all be covered by CTP. In Australia, the schemes varied from state to state. When an insured person causes an accident, third-party property insurance or comprehensive insurance pays for the other person’s car repairs, any property damage, and medical costs. They should not be confused with mandatory third-party insurance, which covers fatalities or serious injuries sustained in an automobile accident. Before a car may be registered in New South Wales, it needs to be insured. Because of its color, it is frequently referred to as a “greenslip”[4]. In New South Wales, there are five CTP insurers with licenses. Allianz has one license, and Suncorp has two each for GIO and AAMI. QBE and NRMA Insurance (NRMA) hold the remaining two licenses. CTP insurance that is licensed by GIO is also provided by APIA, Shannons, and InsureMyRide insurance.

In the Australian Capital Territory, an additional privately offered program is applicable through AAMI, APIA, GIO, and NRMA. CTP is paid for by car owners when they register their vehicles. In Queensland, the cost of registering a car includes CTP. Allianz, QBE, and Suncorp are the available private insurers, and government pricing controls are in place.[5] In South Australia, the Motor Accident Commission has stopped offering CTP as of July 2016. As of right present, the government has granted licenses to AAMI, Allianz, QBE, and SGIC, four private insurers, to provide CTP insurance SA. Owners of vehicles have the option to select their own CTP insurer as of July 2019, and new insurers may enter the market.[6] A private CTP plan is absent from three states and one territory. The Transport Accident Commission in Victoria offers CTP by means of a levy included in the vehicle registration price, which is referred to as the TAC charge. In Tasmania, the Motor Accidents Insurance Board runs a comparable program.[7] In Western Australia, an analogous program is implemented by the Insurance Commission of Western Australia (ICWA). The Territory Insurance Office (TIO) oversees the management of the Northern Territory plan.


The limit of liability for all kinds of motor insurance plans in Bangladesh is set by legislation. The current limitations prevent adequate compensation for the victims. The following amounts apply to Act Only Liability Motor Vehicle Insurance: BDT 20,000 for death, BDT 10,000 for serious injury, BDT 5,000 for injury, and BDT 50,000 for property damage. These amounts cover both personal injury and third-party property damage.[Reference required] The governing authorities are currently reviewing the limits.


The public auto insurance system is offered by a number of Canadian provinces, including British Columbia, Saskatchewan, Manitoba, and Quebec; private insurance is offered across the remainder of the nation. In Quebec, third-party insurance is required and has been privatized. Everything is covered by the province except the vehicle(s). The government of each province determines which benefits are included in the minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Basic auto insurance is required across Canada, with a few exceptions, such as government vehicles.All states, with the exception of Newfoundland and Labrador, require accident benefits coverage.Every province in Canada offers collision victims access to some type of no-fault insurance.

The degree to which tort or no-fault is highlighted varies from province to province. For the three months that they are allowed to use their international license, foreign drivers entering Canada are able to drive any car that their license permits. International drivers are required by law to obtain Canadian insurance within the three months after entering the country; after that time, they are issued an International Insurance Bond (IIB). Each time an international driver enters the nation, the IIB is reinstated. Damage to the driver’s own car is optional; however, in Saskatchewan, SGI includes collision coverage (with a deductible of less than $1000, like a collision damage waiver) with the base insurance package. This is a noteworthy exception to the rule. Although less than 0.5 percent of people in Saskatchewan have chosen to have their auto insurance through a tort system, this is still an option available to them. The “facility association residual market” (also known as “FARM”) provides facility insurance policies to high-risk private and commercial drivers who are unable to purchase a policy in the voluntary market (normal car insurance), as a last alternative given that auto insurance is required in Canada.


Protection against property losses and injury to third parties is offered by traffic compulsory insurance. RMB180,000 for death and injury/per crash, RMB18,000 for medical costs, and RMB2,000 for physical loss is the minimum liability coverage.Commercial motor insurance, sometimes referred to as additional third-party liability insurance, offers additional protection up to RMB 10,000,000, excluding the driver and passengers.[Reference required] While vehicle damage and theft insurance covers both the vehicle and its contents, driver and passenger insurance only covers the driver and passengers. There is also the option of excess waiver insurance, which eliminates all deductibles.

Hong Kong

Section 4(1) of the Motor Vehicles Insurance (Third-Party Risks) Ordinance (Cap. 272 of the Laws of Hong Kong) mandates that all car users, including those who are authorized to use it, obtain insurance or obtain another form of protection against third-party risks. In the event of a collision resulting from the usage of the insured vehicle, third party insurance shields the policyholder against liability for death or bodily harm to third parties up to HK$100,000,000 and/or damage to third party property up to HK$2,000,000. There is also comprehensive motor insurance offered.


The minimum required by law Third Party Liability (“TPL”) Coverage protects against the legal liability resulting from a traffic crash that causes loss and damages to any third party. It is MOP1,500,000 per crash and MOP30,000,000 annually.[Reference required]. There is also comprehensive motor insurance offered.


In Indonesia, it is mandatory for every car or motorcycle to have third-party vehicle insurance; otherwise, the vehicle will not be deemed lawful. This mandatory auto insurance is officially known as the Road Traffic Accidents Compulsory Coverage Fund (Indonesian: Dana Pertanggungan Wajib Kecelakaan Lalu Lintas Jalan, DPWKLLJ). Consequently, until the car is insured, the driver is not permitted to use it. Introduced in 1964, DPWKLLJ is only for bodily injuries and is run by PT Jasa Raharja (Persero), an SOE [id]. DPWKLLJ is included in the annual vehicle tax that is paid to the local Samsat (Sistem Administrasi Manunggal di bawah Satu Atap), which is in charge of cars and roads, through an annual premium known as the Compulsory Donation to the Road Traffic Accident Fund (Indonesian: Sumbangan Wajib Dana Kecelakaan Lalu Lintas Jalan, SWDKLLJ).


In urban areas, the motor automobile became widely used following World War I. Even though cars were becoming faster and more dangerous at that point, no country in the world still required auto insurance. This meant that drivers frequently had to pay hefty charges for damage to their cars and property, while injured victims would rarely receive any compensation after a collision.

In the UK, a mandatory auto insurance program was established by the Road Traffic Act of 1930. This made guaranteed that everyone who owned or operated a vehicle on a public road was covered by insurance in case they were found liable for the harm or death of any third party.A comparable law known as the “Act on the Implementation of Compulsory Insurance for Motor Vehicle Owners” was passed by Germany in 1939.

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