What is the difference between direct and indirect insurance?

Direct insurance is a type of insurance policy that covers a policyholder directly. This type of insurance policy pays out the policyholder in the event of a claim. Indirect insurance, on the other hand, is a type of insurance policy that pays out to another party rather than the policyholder directly. This type of policy may be purchased to cover a third party who may not have the ability to purchase direct insurance. In California, the main difference between direct and indirect insurance is that direct insurance is purchased by the policyholder, while indirect insurance is purchased by someone other than the policyholder, often with the intent on protecting a third party. Direct insurance often provides many additional benefits to policyholders, such as coverage for risks that the policyholder may not have considered or purchased on their own. However, direct insurance policies are typically more expensive than indirect insurance policies. In contrast, indirect insurance is generally less expensive than direct insurance. This type of policy may also include coverage for the third party. It is important to note that indirect insurance is also known as a "third party insurance" and can be purchased through a business, a family member, or a government entity. In summary, in California, the main difference between direct and indirect insurance is that direct insurance covers the policyholder directly, whereas indirect insurance covers another party other than the policyholder. Direct insurance policies typically include additional benefits, but are more expensive than indirect insurance policies. Indirect insurance is less expensive and may also include coverage for a third party.

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What is the difference between direct and indirect insurance?

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