Check out what actually auto insurance is and what your ideas are far away to be truth.
Auto Insurance: Truth and Myths
Auto Insurance Is...
Protection. With the help of auto insurance you may transfer risk for a loss. Paying premiums
to an insurance company you'll be reimbursed if you have an accident. The amount you can collect and under what circumstances are outlined in your policy.
Required. Licensed vehicles must have minimum insurance coverages depending on the state law.
Varied. Every state has its own established minimum policy requirements. But you may purchase additional coverages to increase your safety level but also and premiums you pay to an insurance company.
Auto Insurance Is Not...
A savings account. The premium you pay is not deposited into an “account” for you to withdraw in the event of an accident. Your policy may be not enough to cover the cost of a major claim.
Complete. Every policy has limitations on what it covers and to what extent. You may not be fully covered in every situation. Your policy will explain the limitations.
Guaranteed. An insurance company has the right to cancel your coverage or not to renew your policy, depending on your driving record and other factors. But the reasons for it should be assigned in your policy or state laws.