Can you explain to me how car insurance works?

I'm not quite sure how car insurance works. Is it required by the government or do people buy it to protect their assets? How does it work if you file a claim?

Answer provided by
Eric Schad
Answered on Apr 22, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“To answer your question, car insurance is required by most state governments to protect other motorists in the event that you cause an accident. Liability coverage is used to pay for the damages and medical bills of the other party.
Car owners also get insurance to protect their own vehicle. If they’ve bought a nice or expensive car, they may want to insure it against all types of scenarios, such as accidents, weather damage, theft, or vandalism.
This is where collision and comprehensive coverage comes in handy. It’s more expensive than liability insurance, but it also covers more perils.
Beyond this, there are other types of insurance that can provide additional protection and peace of mind in exchange for a higher rate.
I hope this answers your question!”

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