Car Insurance Rates by Make and Model
All types of insurance involve a transfer of risk. Insurance companies are in the business of assuming a degree of risk from each policyholder they cover. They’re also, however, in the business of being profitable, which is only possible when taking in more premium dollars then they pay out in claims.
The risk of loss you face when you drive a motor vehicle exists in several forms. In the event of a collision, you’re at risk of damaging your vehicle, damaging other vehicles or causing damage to additional property such as buildings, fences, landscaping, etc.
There’s also the risk of bodily injury to you or others or even fatalities. Rather than facing these catastrophes on your own, your auto insurance coverage is designed to share the burden of certain of these liabilities, damages and potentially huge financial losses.