Car insurance is insurance for any kind of road vehicle, being cars, trucks and motorcycles. Consumers take out car insurance to protect themselves against any physical damage or human injury as a result of an accident or having your car stolen. When a person takes out car insurance, the first thing to understand is that should an accident happen, your insurance policy will only cover the amount that the car is worth (the retail value) at the time of the accident. The moment you drive your car out of the showroom, it immediately depreciates in value, meaning that your car is not worth what you initially paid for it. So what happens if you get into an accident or have your car stolen and your insurance does not pay out the full amount that you bought the car for? This is where shortfall insurance comes in. It will not pay out as much as car insurance, but their primary purpose is to pay for the financial gap that is not covered by the insurance company. Thus, shortfall insurance almost acts as the bridge between what the car insurance company will pay out and the leftover amount that still needs to be paid.