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Car insurance is one of the most widely used types of insurance in the world, and is taken out to protect vehicles and their drivers in the case of an accident. Car insurance is known by many names, including auto insurance, motor insurance, and gap insurance. There are a wide range of car insurance policies on the market, with differences in the kind of coverage offered and the obligations of individual drivers.
In most jurisdictions around the world it is mandatory to have a basic level of cheap car insurance (günstige Kfz-Versicherungen) , in order to protect other people in the case of accidents that are not their fault. This kind of third party coverage is normally the most affordable kind of protection available, because it offers no protection for the policy owner or their own vehicle. In contrast to basic third party protection, there are also a number of more detailed and comprehensive contracts on the market, which protect people from all manner of losses.

Auto insurance products can be categorised according to the particular items that they insure, with various items easy to divide into categories. Of all the car insurance products on the market, the items that are possible to cover include third party personal, third party property, the insured vehicle, the insured person, fire and theft, comprehensive, liability, and no fault insurance. The categorisation of things like no fault insurance and comprehensive insurance can differ widely from place to place, so it is always important to check your contracts before signing on the dotted line. Because car insurance is such a ubiquitous product in modern society, it is easy to compare policies and contrast product types.

Car insurance policies can differ widely with regard to the price of ongoing premiums and the level of protection being offered. Generally speaking, policies that offer less protection will be more affordable for the policy owner. For example, in most countries the cheapest form of car insurance is basic third party protection, a form of insurance that is often mandatory before driving on public roads. This type of insurance is often combined with government registration and taxation schemes, to make it easier to enforce and control. Deeper levels of personal and vehicle protection often come with higher premium prices, although differences in premium prices can and do exist across similar insurance products.