What the point of having car insurance?

Question

you pay to have it...but then you pay more once you crash. and what happens to all the money you spent on paying insuance bills?

Answer 1

Well that may be true for your plan but for others when they get in a car crash their insurance company pays it with the money you have already given them in the past.

Answer 2

Insurance is for your economic protection.  It is nothing more than placing a bet.  The insurance company is betting you won't have a claim, but if you do they will pay off the bet.  "Yer pays yer money, yer takes yer chances"

Answer 3

its the law  

Answer 4

You need insurance in every state as far as i know. The purpose is if you hit someone or cause damage to another persons property they will pay for it for you. The money you pay will most likely be used if you ever have a claim against you.  

Answer 5

You don't know what insurance is.

Insurance limits your liability for an accident in exchange for a calculated payment (based on risk). If you cause an accident and are sued for $500k, the insurance company will pay that (instead of you). You're now seen as a higher risk driver and your insurance premiums rise accordingly.

If you can't afford insurance, would you ever be able to afford $500k (for an uninsured accident)?

Answer 6

if you get in a crash and you have full coverage they have to pay for the other person cars and your car and if needed medical bills. If you didn't have insurance you would end up having to pay waaaay more than you pay for insurance for a month or the deductible. Believe me I got into an accident and  they gave me a check for $6500 and had to pay for the other car which was over $10,000 and for medical bills of the other person. So if I hadnt had insurance I would have paid an assload of money! plus if you need a lawyer or anything they take care of that too which ends up paying off.

Answer 7

if you dont have it you could lose everything you own if the guy had it that hit me would of been nice to pay my mediacal bills for me and my 2 friends that ended in the hospital and i couldnt work for at least a year

Answer 8

You really, really must be joking, right?

Answer 9

Well, you can look at this 2 ways:

With insurance, if you pay your premium and never have an accident kudos to you!!  If you do, your insurance pays then you get to keep the roof over your head, your car may be repaired and this insurance company is still willing to insure you!

Without, when you damage someone's property or injure someone in an accident that's your fault get ready to give up everything you own (house, car, bank account) when you get sued!

Hopefully this answers your question about all the money you spend for protection by paying your premiums.

Answer 10

When you say that "you pay more once you crash," I believe you are referring  to the increased premiums .  Once you crash, you have proven yourself to be an unsafe risk, so the insurance company whats more money.  They are just trying to regain on the loss of having to pay for your accident.  And some people have very expensive accidents

Answer 11

We just have liability and not full coverage.  When we get done paying for the repairs from the deer, ask me why we should have full coverage.  New hood, new windshield, new air conditioner.  New , well you get the point.