car insurance

[flats]

Can you tell me how do car insurance companies get there own insurance. In other words when a claim is made against a car insurer how do they cover their own costs

[Ethel]

It is covered by all the premiums that are paid without claims. It's a gamble really.

I have only made one claim in over 40 years of driving, so my premiums have paid other peoples claims.

But insurance companies in the UK are bonded, so if they become insolvent claims will be met.