Life is risky: one minutes you can be happy, and healthy. Then before you know it, something dreadful can happen-and you are in trouble.
You can reduce the risk of bad things happening by being prudent and careful. But you can never get rid of danger completely and that's why many people take out insurance.
The dictionary defines an insurance as an agreement with an insurance company to pay money in case of misfortune. In this way, while you can't always stop bad things happening ,you can at least get some money to help you to cope with the results.
Many different types of insurance exist. For example, you can insure your car against damage or theft. That means that if someone crashes into your car, the insurance company will pay part of the cost of repairs. And if you crash into someone's car, your insurance company will cover the cost of repair. And if someone steal your car, you can get large sum of money to help pay for it to be replaced with another one.
Another important type of insurance is house insurance. Imagine if your house burnt down, and you had no insurance. You would have to pay for a new house and few people can afford to do so. So it is sensible to take out an insurance policy to cover the risk. You can also insure against damage and against theft from your house.
Of course, insurance may not be cheap. There are many insurance companies, and it's a good idea to go to different companies, and it's a good idea to go to different companies to get quotations- that us, what they would charge to insure your house, or your car. The cost of insurance -known as the insurance premium can vary quite alot form one company to another