E.g. a car owner must get insurance to cover the cost of repairing or replacing his car if it is damaged or stolen.
If the vehicle is insured and then the owner is in a crash that costs more than the vehicle insurance covers, the policy automatically pays the additional amount and it would be up to the owner to get back the additional amount from his insurer or other insurer.
A few insurance policies can allow the insured to claim a sum equal to the excess paid.
A claim can be made for a lump sum, a sum for the vehicle or another vehicle owned by the policyholder or the excess paid, for the insurance premium and another sum for the financial losses resulting from the claim or accident.
How should I get insurance?
If the policyholder buys a new car, an insurance policy will usually be attached to the vehicle.
If the policyholder buys an older car from a company, the insurance policy would probably be for the old vehicle.
The insurance company will usually offer a limited package