Assurance for cover, in other words it is called as insurance. It is the cover promised by the insurance company on the individual’s property or life. These are mostly financial covers. The financial covers are made in return to the premiums that are made by the individual on regular basis. These premiums are calculated on certain grounds and they vary from person to person. These insurance companies collect huge amount of data, or past records on the relevant field. For example, in motor insurance, the company would have collected tremendous amount of data from past accidents and would have a database on the same. So when a new individual needs to insure his or her motor vehicle, the insurance company refers to the cost of damage that might turn up in the future by comparing his or her age, sex, driving record, accident history of the insured and also sometimes the model of the car, with the data they have. In case the driving record is bad i.e. the driver was involved in large number of accidents then the company levies a hefty premium in order to cover the expected losses. They think before insuring something in order to minimize their loss.