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, you can be covered to repair damage to your car after an accident, damage to other people's cars and property, the cost to replace your car after it's stolen, and more.
If an event happens that’s covered by your car insurance, you may need to make a claim. You may have to pay an excess (particularly if you’re at fault), and the rest of the bill will be covered by your insurer. The excess is usually a lot less than the total cost of the damage, which is why it can be useful to have car insurance!