Car Crash Cover

All drivers are required to have some form of car insurance but how exactly does car insurance work? Most of us pay auto insurance premiums every month without ever filing a claim however when can you file a claim and how does car insurance provide coverage?In simple terms car insurance is a form of exchanging money for financial protection based on risk. A car insurance company calculates the risk profile of a driver, compares it to a vast pool of data and promises to provide insurance coverage in exchange for a fixed amount. Car insurance companies essentially make extremely educated bets on making money through charging policyholders more than the amount of claims they have to pay.Since car insurance is required by all states understanding auto insurance coverage is critical for both learning ways to save money on car insurance and knowing how you are eligible for compensation in the case of an accident.Car insurance companies offer free car incurance quotes but you always need to educate yourself about policy coverage before securing an auto insurance policy. When car insurance coverage is in place you have financial protection for accidents resulting in damages insured under the policy. Most states only require liability insurance providing some kind of coverage for bodily injury to others however many types of car insurance coverage exist which not only provide protection to others but also your own injuries and/or property loss from an accident. Car insurance is mandatory and operating a vehicle without car insurance is illegal with stiff penalties including heavy fines, possible drivers license suspension and even jail time in some states. Not only do you expose yourself to great personal liability financially but you also expose other drivers and passengers to great risk. Without car insurance you can be subject to lawsuits, negligence charges and more in the event of an accident.