Why Do I Need Car Insurance?Simple: because driving without car insurance is illegal. But there is more to this. Car insurance protects you, financially, if something bad happens. While car insurance can be one of the most costly parts of owning a car – it is also oneof the most important! But be aware – not all car insurance is the same.depending on your coverage, you may or may not be protected from the different problems that may arise. Unfortunately, many people don’t fully understand what their car insurance pays for until they are stuck with thousands of dollars of uncovered expenses.Buying a car insurance policy is like making a contract between you and an insurance company. You promise to pay a certain amount of money on a regular basis. They promise to pay for specific car-related expenses as long as the policy is in effect. Before we get into m employment laws uk ore detail, let’s define some basic car insurance terms.PREMIUMThe premium is how much you will be charged for each type of coverage you choose ? basically,how much this whole thing is going to cost you. Looking at premiums can help you compare insurance offers and identify possible savings opportunities. Most insurers will give you optionsfor paying your premium, such as paying all upfront or making a down payment (often 2 months worth) and then paying the rest in monthly installments.POLICY PERIODYour insurance coverage is only in effect during period specified in your policy. Typically, auto policies are in effect for six months or one-year terms. When you are shopping for insurance, be sure you know the policy period.DEDUCTIBLEA deductible is the amount of money that you pay BEFORE the insurance money kicks in.Let’s say you back your car into a tree.