Car ownership and insurance

Owning a car is convenient and considered to be a status symbol, yet there are many expenses involved which a person owning a car has to incur.

It is mandatory for car owners to purchase car insurance if they own and use a car. The rules for car insurance vary from country to country , state wise. The car insurance is supposed to compensate the car owner for any losses due to an accident and third party insurance also has to be purchased.

In some countries, all car drivers have to purchase insurance for the cars which they are driving, while in other countries, the car owner only has to purchase insurance at the time of registration of the car. There is no mechanism to ensure that the car owner will renew the insurance.