Insurance is a contract that allows you to cover a contingency by paying a premium (the insured) to the insurance or reinsurance company.

 

That is, we make a small payment for which we do not receive anything, but if a certain situation occurs, the insurance company pays us. For example, home insurance. In this type of insurance, an amount is paid annually. If they enter to steal, the insurance covers monetarily the value of the theft as specified in the contract.

The amount of the premium payment will depend on the risk to be covered and the probability of its occurrence over time. In the case of risk coverage for very high amounts, the figure of the reinsurance company appears that covers all or part of the risks, sharing a fee with the insurer.

Types of insurance

There are two different kinds of insurance, personal insurance and damage insurance:

Personal insurance

Risks that may affect the health or physical integrity of the insured are included.

Life insurance : It is that insurance that covers the risk of death of a person. The insured person cannot be under 14 years of age.

Accident insurance : This insurance covers injuries due to an incident involving temporary or permanent disability or death.

Health insurance: With this insurance, payment of certain amounts and expenses for medical and pharmaceutical assistance is guaranteed in the event that the insured becomes ill.

Damage insurance

Insurance whose effects have economically affected both movable and immovable property (a house, a farm, etc.) are included. The category of vehicle insurance is one of the most important.

Obligatory insurance: It is responsible for covering material and personal damage caused by the driver with his vehicle to a third party.

Voluntary insurance: It covers other guarantees than the compulsory insurance to cover damages that may be caused to the car itself, such as broken windows, theft or fire and injuries caused to the occupants.

Comprehensive insurance: It is the insurance that has the greatest coverage, since it covers almost all own and third-party damages both to vehicles and to people.

Comprehensive insurance with excess: In this type of insurance, the insured and the insured share risks.