The basic use of Car Insurance is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident. In many jurisdictions it is compulsory to have car insurance before using or keeping a car on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly. Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently. An excess payment, also known as a deductible, is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair "garage" (The term "garage" refers to an establishment where vehicles are serviced and repaired) when you collect the car. If one’s car is declared to be a "write off" ("write off" is commonly used in motor insurance to describe a vehicle the worth of which is less than the cost of repair), the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you. If the accident was the other driver’s fault, and this is accepted by the third party’s insurer, you’ll be able to reclaim your excess payment from the other person’s insurance company. If the other driver is uninsured, a policy’s minimum limits include coverage for the uninsured/underinsured motorist(s) at fault.

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