what is the purpose behind it,
i just went for a car, and i can see that i have to spend like 600$ for car insurance, why do i have to spend it?
also someone mentioned that i can get a better auto insurance quote if i take some online quotes, where can i get them?
the whole purpose behind insurance is to make sure the person or property you destroy, gets full amount due to him. not withstanding if you can write check or not.
insurance premium is the amount that you pay, each month/year, so that if the need arises, your company will pay them, instead of you.
Why? Because accidents do happen. Trust me. I’ve been in more than my fair share, and if not for auto insurance, I’d have been totally screwed.
I think progressive is one where you can get quotes online and perhaps geico as well.
The purpose of ALL insurance is to transfer RISK. WHEN something happens, there are financial consequences. Because MOST people can’t write a check to cover those consequences, we pay an insurance company to write the check for us.
The insurance REQUIRED by law does not cover damages to YOU or your car. It covers damages to anyone else that YOU are liable for. the theory is that I should not have to pay if YOU hit me and can’t write the check. Personally, I thought that was why I pay for ‘uninsured/underinsured’ motorist coverage on MY policy.
Go to ANY search engine an search for auto insurance quotes. You will find several comparison sites. I personally prefer the sites of actual insurance companies.
Insurance is mandatory. Welcome to adulthood.
Well, from YOUR point of view, you can’t borrow money to buy a car, without insurance. The lender will require you to carry it, to protect the car, which you are using to secure the loan.
So, the main point in MOST people, to carry car insurance, is it lets them buy a car they can’t afford, on credit.
From a risk management point of view, of course, it’s a completely different reason, but you probably don’t care about it.