Random Thoughts

Car insurance protects the insurance holder against loss or liability that occurs due to traffic accidents. In most countries, if you own a car, then it is compulsory for you to have your car insured. Car insurance does not mean insurance of the car only. In some countries, it also means insurance of the driver too.

In many places, like New South Wales in Australia, the law requires that a car owner must have a mandatory insurance policy for the Third Party (known as CTP Insurance, or Compulsory Third Party Insurance). Unless a car is insured, it will not be legal to drive that car. The CTP Insurance is also commonly known as a 'Green Slip'— owing to the green color of the CTP insurance form's pages. The insurance holder has to obtain this from any one of New South Wales' seven principal insurers. However, only personal injury liability is covered by third party insurance policies.

In Australia, property damage is covered by comprehensive vehicle insurance policies, which are sold separately. Besides traffic accidents, these schemes also include insurance coverage against events like fire, theft or property damage.

In Canada, provinces like British Columbia, Quebec, Manitoba and Saskatchewan have a public car insurance system, which is different from the one provided privately in other parts of Canada. Car insurance is compulsory throughout the country. The government of each province determines the minimum benefits that are to be covered by the car insurance. Accident coverage is a mandatory requirement everywhere except in Labrador and Newfoundland.

A 'no-fault insurance' is provided to victims of accidents in all provinces of Canada. The amount of coverage for no-fault differs from province to province. In Saskatchewan, collision coverage is provided by the government, and includes collision damage waiver, which is incorporated into the insurance policy. Car owners can also choose to have their insurance through a tort system.