If you own a car, car insurance is not just an option—it is a legal necessity. And you wouldn't want it any other way. If you are involved in an accident or have your car stolen, owning the right kind of car insurance can help to ease a difficult situation. Remember to shop around for your car insurance as this is a very competitive market.  Always read the small print and make sure that your car insurance covers all of your requirements.

• Property coverage pays for damage to or theft of your car.
   

• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
   

• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Accidents happen. In cars, they happen nearly 100,000 times a day, and insurance can be the only thing standing between you and financial catastrophe.

What type of car insurance is right for you? It is illegal to drive in most countries without adequate car insurance and therefore the minimum standard of cover you can take out is ‘third party’. This covers:

· Liability for injuries to others, including passengers.
· Liability for damage to someone’s property.
· Liability of passengers for accidents caused by them.
· Liability arising from the use of a caravan or trailer while attached to the car.

Next comes ‘third party fire and theft’ which will also pay out if your vehicle is stolen or set on fire.

A comprehensive (normally known as ‘fully comprehensive’) car insurance policy will pay-out for all of the areas covered by third party fire and theft with the addition of paying for any damage to your own vehicle regardless of who caused the accident. It also covers loss of, or damage to, personal effects in the car.

Though polices vary between individual car insurance companies, benefits typically include a courtesy car, free cover for driving in Europe and, in some cases, legal aid when the accident is not your fault. These benefits may incur an extra cost.