This insurance covers the policyholder which might occur due to the theft of the car which was ensured or due to accidents or even due to natural calamities. During this plan, the holder needs to pay a certain amount of insurance money to the insurance company which would act as an assured sum in a time of need. This type of insurance is made to protect your vehicle from unforeseen risks. It basically provides protection against the losses incurred as a result of unavoidable instances. It helps cover against theft, financial loss caused by accidents and any subsequent liabilities. The cover level of car insurance can be the insured party, the insured vehicle and third parties (car and people).