How Does Car Insurance Work

Car insurance like other insurance products is essentially an agreement between you the policyholder and the insurance company.

How does car insurance work. When you buy insurance your insurer or agent will ask some pretty basic questions about you and your car and then youll have some options when picking coverages. This way the hassle doesnt remain a hassle for long. Forty seven states require that you have at least some kind of car insurance so its a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident. This includes repairs on damaged cars and medical treatment for you or your passengers.

All of these factors impact your price. Figuring out car insurance can be a hassle. Many options are out there not just among companies but also the kind of coverage to get. We want to help you understand just how car insurance works so weve created this complete guide to understanding auto insurance.

How car insurance works car insurance is designed to protect drivers and their passengers from financial hardship after an accident or other vehicle related incident. Your car insurance works by helping pay for bodily injury and property damage claims filed against you after an accident. And then they throw all sorts of confusing terminology at you. How does car insurance work.