Vehicle Insurance Function – Media Pendidikan


The purpose of vehicle insurance is to provide financial protection in the event of an accident. The coverage provided by your policy will vary based on the value and type of vehicle you drive, as well as any endorsements that apply.

Function of vehicle insurance

  • Insurance is a contract between an insurer and an insured.
  • It is a form of risk management that transfers some of the financial burden from one party to another when there is potential loss or damage.
  • For example, if you’re driving your car to work and it gets hit by another vehicle, you’ll want to ensure that your insurance company will cover any costs associated with repairing or replacing damages caused by this accident. This way, you don’t have to pay for repairs out of pocket (or worse—with nothing left after paying bills).

Purpose of vehicle insurance

  • Purpose of vehicle insurance
  • Protects you from financial loss. When you buy a new car or truck, the cost of insuring it can be far more than what you paid for it. If your vehicle is stolen and not recovered, this may be costly to replace the lost value of your vehicle (and its contents) in addition to any damage done to it by criminals. It’s also possible that some other people might want to get at whatever goods were inside your locked car when it was stolen—for example if they had been left there accidentally during an auto theft break-in attempt—and now those goods are lost forever as well! In short: having good liability coverage means protecting yourself against both financial loss and legal liability so that no one else has access to anything important about how much money was spent on replacing lost property because someone else caused damage inside their own personal property


Exclusions are not covered by the vehicle insurance. Exclusions are not covered by the policy, and they’re not even included in your policyholder’s billings. They may be listed on your policyholder’s monthly statement as “excluded,” but this doesn’t mean that you’ll be off the hook for paying them out of pocket.

Excluded items include:

  • Losses due to total or partial loss of the vehicle caused by an accident, theft or vandalism (if it wasn’t stolen or vandalized).
  • Damage caused by acts of God; lightning strikes; hail storms; earthquakes; volcanic eruptions; tidal waves; hurricanes/tornados/floods/hurricanes (including wind damage); tornadoes and other similar natural disasters including but not limited to wind gusts exceeding 100 mph (mph) per hour at any location within the United States where such event occurs during any given calendar year [and here I just googled “Wind Gusts”].

Children’s car seats and booster seats

  • Children’s car seats and booster seats are not covered by a standard policy. You need to add on a separate policy for them, usually at an additional cost.
  • Adding these items can be done for a small fee, depending on the amount of coverage you want and the age of your child.

Hand controls for the disabled

Hand controls are not a replacement for a wheelchair or walker. They are a supplement to hand controls and may help you get in and out of your vehicle, but they do not provide the same level of mobility as other mobility aids.

Limits to the policy coverage

Limits to the policy coverage

The limits of coverage are defined by law, but they may be increased or reduced by a driver’s insurance policy. For example, if your vehicle has more than one engine and you’re driving two cars at once, then you could have coverage for both vehicles under one policy. If your car has only one engine but it is being driven by someone else who owns a separate car with another engine (and therefore isn’t covered under this particular policy), then the second vehicle would need its own policy.

Vehicle insurance provides financial protection in an accident.

The insurance industry is an essential part of our economy. It provides financial protection in an accident, so that you can continue to drive legally and safely.

Insurance protects you from financial loss if someone else’s actions cause damage to your vehicle. You cannot control other people’s actions, so it is impractical for you to insure against every eventuality (e.g., a hit-and-run). However, most drivers make use of their vehicle insurance by purchasing collision coverage or comprehensive coverage with their policy; these provide protection for damages caused by collisions between vehicles or from fire, theft or vandalism—even if no one else was involved in causing the accident!


In conclusion, vehicle insurance provides financial protection in the event of an accident. It also helps to cover any damage done to your vehicle and covers costs associated with repairs or replacements.

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