Car insurance is a contract that basically says you'll pay money to the insurance company and later, if you have a car accident that's covered by the policy, the insurance company will pay you money.
You could pay for car insurance and never use it. But in the event of a big accident, you could receive far more than you've paid in.
Car insurance is a financial safety net. It saves you from the potential financial disaster of owing someone thousands or even hundreds of thousands of dollars after a car accident.
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