Some people try to reduce their risk when they driver their car. In this case reduce risk mean we do some risk management and move all of our risk to another hand to protect us. Some people buy insurance to manage their risk. With insurance we could calculate all of unpredictable cost change it become predictable cost. We just need to prepare their premi and calculate it as our predictable cost. After buy insurance we don’t need to have extra budget to manage our risk and unpredictable cost.
In its first time insurance is identic with life insurance to protect human life and control their unpredictable cost which could happen when some has a sick, or suddenly death without any preparation for their family and their debt. Recently people try to improving insurance concept, not just to protect human life, but also to protect human’s asset from unpredictable cost. For example building insurance, we could change all of unpredictable risk like fire, natural disaster like earthquake, etc to become predictable and regular cost for pay insurance premi every year.
And now there are car insurance which could protect our car from any kind of risk. For car insurance the cheapest rate doesn’t always mean good. Some people try to get more discount auto insurance for their car insurance to make him sure about their life and their risk