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How does car insurance work?
Car insurance is designed to cover the costs involved with certain events. Depending on what's included in your policy and the policy terms, your car can be covered to be repaired after an accident or insured event, provide cover for damage to other people's cars and property, the cost to replace your car after it's stolen, and more, but it all depends on the type of insurance policy you hold and your level of cover.
If an insured event happens that’s covered by your car insurance, you may need to make a claim. You may have to pay an excess, which can be less than the total cost of the damage, which is why it can be useful to have car insurance.