The primary use of vehicle insurance is to protect against losses if a traffic accident would occur. In most countries all vehicle owners need to have insurance that at least covers the losses of the third party in case of an accident. That means that all vehicles in traffic have at least an insurance that covers the cost of the damage done to anyone else.
It is possible to extend the basic vehicle insurance so it also covers damage on the insured party and vehicle.
If it would be cheaper to replace the car, than repair it, the insurance company may declare the vehicle as totally destroyed.
The premium you have to pay for your insurance is calculated based on your age, gender and how much the car is used (distance). If you are under the age of 25 you will in most cases have a lower premium charge if you are a woman. Statistically, women drive less miles per year and have a proportionally lower accident involvement than men. After the age of 25, this difference gets lower. Some car insurance plans have limits on how many miles you may drive your car per year. This kind of insurance can fit well if you for example have a veteran car that you don't drive that many miles per year.
There are many insurance companies providing free quotes online. Spending five minutes getting quotes from a couple of insurance companies could save you a lot of money every month. We recommend getting a free quote from InsureMe.com and Kanetix.com.