Tom went to his car in the morning and saw that a car or truck had bumped into it during the night, causing a lot of damage. what is the most likely outcome of this situation? his finance company will reduce his interest. his insurance company will lower his monthly payments. his insurance company will pay for damages. his finance company will increase his interest.

His insurance company will pay for damages.

Step-by-step explanation:

An insurance is a form of contract that permits an individual to transfer the responsibilities of a financial loss to an insurance company. The company bears the risk of the financial loss. Small amount of money are collected from their clients and summed together to pay for losses that the client may encounter in the future. Insurance safeguards an individual and his property from losses, misfortune, hazards or theft. Covered losses are paid for by the insurance company thereby reducing the financial costs for the  individual.  Examples include auto insurance , health insurance, disability insurance, and life insurance.