Definition: Direct car insurance refers to a policy that insures the driver's own vehicle, or rather directly covers the cost of repair or replacement of that vehicle if it is damaged or destroyed by an accident. The term "direct" in this context means that the costs are not passed on to the insured (the driver), but are carried directly by the insurance company. In other words, the insurance company will only pay for repairs and replacements if they were incurred while driving the insured's car. In order to qualify for direct coverage, an insured must have a valid license plate or tag indicating that they drive a specific make and model of vehicle (this is known as "primary proof"). The policy typically covers damage to the vehicle itself (the driver's own vehicle), and will also pay for repairs or replacements to other parts if those are necessary.
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