What is the purpose of car insurance?



Now I understand what car insurance really does, they cover losses mainly out of pocket, reduce risk which covers costs of many, but I have trouble understanding why a company is needed to do this. Lets say on an average a person pays 150/month for coverage. Over time this money adds up. After one were to be in a collision, they are presumably "covered", yet a deductible is payed, then they increase the payments.



BEST ANSWER: You can compare quotes very fast and free at: http://WWW.INSURECOMPAREQUOTES.US


SOURCE: http://www.insurelabs.com/forums/topic/what-is-the-purpose-of-car-insurance/