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?

Apr 22, 2021
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Eric Schad
Answered at Apr 22, 2021
“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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