It is the law to have car insurance cover - it protects you and other drivers on the roads. Insurance companies work out the chances and costs associated with any risk that they cover. These calculations give a 'premium' for each individual customer based on the likelihood that they will make a claim. If the claims happen, the insurance company pays out the amount of money they agreed to pay when they issued the insurance policy. | It is the law to have car insurance cover - it protects you and other drivers on the roads. Insurance companies work out the chances and costs associated with any risk that they cover. These calculations give a 'premium' for each individual customer based on the likelihood that they will make a claim. If the claims happen, the insurance company pays out the amount of money they agreed to pay when they issued the insurance policy. |