Protection and Protected Risks
Protection is at the core of short term insurance, including car insurance. You take out car insurance to protect you against the various risks that car ownership brings. As the owner you are facing risks such as having your car stolen, hijacked; a break in or smash and grab incident. Every time you drive you run the risk of being involved in an accident in which your car can either be damaged or, in a worst case scenario, written off. Other risks you face as a car owner includes fire, storm or hail damage. You also face huge risks in the form of third party claims from others for damage caused by you to their property.
A protected risk will be one that is specifically named in your car insurance policy as an insured risk. The risks against which you are protected will depend on the level of car insurance cover you take out. If you take out third party cover only you will not enjoy any protection against other risks such as accidental damage, fire or theft.
A comprehensive car insurance policy covers all the major risks that you are exposed to but even comprehensive car insurance will have, or could have, specific risks that are excluded and for which you are not covered. It is therefore very important to familiarize yourself that the details of your car insurance cover to ensure that you are adequately insured.