Definition: The word 'car insurance price' refers to the total cost, including deductibles, premiums, and out-of-pocket expenses for a vehicle's comprehensive coverage (i.e., car breakdown coverage). It also includes the cost of repairs or maintenance performed by the insurer in response to an accident. In the context of general liability insurance, the term 'car insurance price' is typically used as a placeholder for the total amount that the policyholder will pay out-of-pocket for their vehicle due to a claim made by the policyholder. This could include damages caused by a collision or other type of incident involving a car, as well as any losses related to the operation or maintenance of the vehicle. For example, if an insurance company offers coverage for a particular model of car and the cost of repairs exceeds $500 in a single accident, the policyholder might have to pay out-of-pocket as a result. The amount of money that's covered under the coverage is often based on the severity of the claim, the age and make of the vehicle, and any other factors that may influence the decision to offer comprehensive or collision coverage. In contrast, if the car insurance price is set at $50 per month for all new vehicles, it means the policyholder will pay a flat monthly rate for their vehicle. This includes deductibles paid by the insurer, as well as premiums and out-of-pocket expenses for repairs or maintenance related to accidents that occur during coverage. Overall, the 'car insurance price' serves as an estimate of how much a policyholder might be required to pay in case of a car-related incident, but it is not directly associated with the specific cost of their vehicle itself.
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