Insurance helps protect you from financial loss when things go wrong. For example:

• your mobile phone could fall out of your pocket and break while you’re traveling (and you need a new one)

• you might be injured in a car accident (and you have to pay for treatment and the cost of repairs to your car). We recommend you to visit  http://www.carinsurancerates.me

While having insurance can give you peace of mind, it’s not like a savings account, where any money you pay in belongs to you. What you can claim back from the insurance company depends on what’s covered in your insurance policy.

Depending on what you are insuring against, the insurer agrees to pay you money to help cover costs if that thing happens. For example, if your laptop was stolen from your home, and you had insured it against theft, you could make a claim with your insurer to help cover the costs of getting a new laptop. This is called a ‘transfer of risk’ because the insurer is taking the risk of meeting the cost of the loss. Without insurance, you are taking the risk that you will have to wear the financial loss if things go wrong. You can buy different types of insurance  policies that cover a range of risks, depending on what you are insuring. Insurers offer policies with different features, so make sure you choose a policy that is right for you.

You and the insurer agree on what is being insured. This is written in a legal agreement (contract) called an insurance policy.

The insurance policy sets out exactly:

• what is being insured and the risk being insured against (terms and conditions)

• any exclusions

• how much the insurer will pay if you make a claim

• how much the policy will cost you (premium).

The premium can depend on things like where you live or what you and the insurer agree will be the cost of replacing something if it’s stolen or damaged. The premium is less than the total cost of what you are insuring. You can buy insurance directly from the insurer or from an insurance broker. Insurance brokers are not employed by the insurer and may be able to help you get a better deal.