According to Wikipedia, in law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. In some sense we can say that insurance appears simultaneously with the appearance of human society. There are many types of insurance that are being offered today by different companies. Some of these are:
This in general covers both the property risk (robbery or damage to the vehicle) and the liability risk (legal claims arising from an accident). In the event that there is a motor vehicle collision involving a vehicle you own, this protects you (the policyholder) against financial loss. Coverage of this policy typically includes property (damage to or theft of the car), liability (legal responsibility to others for bodily injury or property damage) and medical coverage (cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses).
Cyclists are now more aware of the need to have liability cover.