It is a type of insurance that protects your vehicle, passengers and you as the driver from damages and losses incurred in an accident. Driving may be therapeutic but it is not always 100% safe. Going out on the road in your car puts you, the passengers, and other drivers at risk of accidents, sometimes totally unavoidable. This is where motor insurance steps in, to provide protection. You pay a yearly premium to the insurance company for coverage. In return, it takes on the responsibility and risk of handling repair expenses in the event of an accident/collision/theft/total loss of the car, partially or fully.