How do car insurance companies make money?

Car insurance helps you get protected against any losses such as accident, theft, etc or any loss financially. There is a prior agreement between you and the car insurance company. You have to pay a premium and the car insurance company pays your losses as defined in the agreement. Car insurance is also called motor or auto insurance. The car insurance always gives the driver piece of mind to drive his car. In case of any emergency it turns out to be a boon to the holder of the insurance policy.

A car insurance company is that company that gives you insurance for your car. It covers the losses during the time of emergencies and helps you be insured in the long run, taking total control of your piece of mind and safety.

How a car insurance company makes money is through us itself. A large number of people pay the premium of the insurance policy. They collect this premium and they directly earn through this money. Suppose an accident of a car takes place then they use this money for insurance purpose but the rest of all the money directly goes in their bank account.