Car insurance is a contract where you pay a premium and the insurer agrees to cover specified losses, subject to the policy terms, limits and exclusions. Depending on the policy, it may cover damage to your car, theft, or damage you cause to other vehicles and property; compulsory third party (CTP) insurance generally covers injuries caused by your vehicle, not damage to cars. If you make a claim, you usually pay an excess and the insurer assesses the circumstances before deciding whether and how much to pay. Compare cover, exclusions, agreed or market value and excesses, and check the Product Disclosure Statement before choosing a policy.