Difference between Car Insurance and Driver Insurance

Key difference: Insurance is a form of risk management that allows one to transfer any type of risk to another, usually an insurance company. Both car insurance and driver insurance are different types of insurances. The main difference between car insurance and driver insurance is that the car insurance protects the car, and the owner of the car. Driver insurance, on the other hand, will protect a particular driver, no matter whose car they are driving.

Insurance is a form of risk management that allows one to transfer any type of risk to another, usually an insurance company. The company assumes the risk in return of payment. Dictionary.com defines insurance as “the act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.” Both car insurance and driver insurance are different types of insurances.

Car insurance is a type of insurance that protects the car owner against financial loss in the event of an incident involving the vehicle, such as an accident. Car Insurance are compulsory is some countries.

There are many types of car insurance, which may include any or all of the following aspects:

Property coverage, for damage to or theft of the car
Liability coverage, for the legal responsibility to others for bodily injury or property damage
Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses

Driver insurance, on the other hand, is a type of insurance that covers the driver against financial loss in the event of an incident involving the driver, such as an accident. The main difference between car insurance and driver insurance is that the car insurance protects the car, and the owner of the car. It does not matter who is driving the car, it may be the spouse, a child or another family member or friend who may actually be driving the car. However, in case the driver is in an accident, the car insurance will cover the car, not the driver. Driver insurance, on the other hand, will protect a particular driver, no matter whose car they are driving.

Comparison between Car Insurance and Driver Insurance:

	Car Insurance	Driver Insurance
Description	Car insurance is a type of insurance that protects the car owner against financial loss in the event of an incident involving the vehicle, such as an accident.	Driver insurance is a type of insurance that covers the driver against financial loss in the event of an incident involving the driver, such as an accident.
Purpose	To protect the policy holder from financial loss in case of an accident, such as damage to or theft of the car, legal responsibility to others for bodily injury or property damage, cost of treating injuries, rehabilitation, lost wages, funeral expenses, etc.	To protect the policy holder from financial loss in case of an accident, mainly from legal responsibility to others for bodily injury or property damage, cost of treating injuries, rehabilitation, lost wages, funeral expenses, etc.
Compulsory	Car insurance may be compulsory is some countries.	Driver insurance is little known and not usually compulsory.