Insurance is in fact compensation of your loss, like if your car gets stolen or you are fired from job or any other hardship which demands immediate money, insurance comes to your aid by providing that money. But for that you need to pay a yearly sum (Premium) to that insurance company from which you bought policy. If something bad happens, you file a claim and get the compensation of your loss. It works on simple rules and not like some complex mathematical problem solving. If you buy an expensive car, you pay more and if you have a cheap one, Yeah, you pay fewer premiums. For more understanding, a sports car costs more insurance than a family sedan. Now, suppose you are in an accident of 3000$ and deductible (the amount you need to pay ranging from 100-500$ or more varying from company to company’s policy) is 300$ then the company will take care of remaining 2700$.

To read more about car insurance cost

Eric Raymond

école de conduite