One of the most misunderstood financial instruments is insurance. For instance when one has motor insurance they tend to think that the policy covers for every possible risk that the car is exposed to. So, it was least surprising to come across a query posted to us recently, where this gentleman wanted to know whether the policy will pay for damages to the car caused by his daughter, who has a learner’s license who smashed the car against a pavement. As the car is on his name, his apprehensions were valid if the insurer would pay the claim.