Terms of Auto Insurance

By | September 12, 2017

Do you want to get the auto insurance coverage you desire for your car? One basic way of accomplishing this is by learning the terms pertinent to auto insurance.

The benefits of learning and knowing the terms of auto insurance can not be over-emphasized. It will not only build your basic knowledge, but stand as a key factor to choosing the right insurance policy for your car.

Carrier

This is the insurance company that underwrite and/or issues insurance policy to policyholders. There are much insurers worldwide and have their own method of operation according to local law, custom and economic level of the state or country at large.

The name carrier is referred to the insurer because it is the insurance company that actually carries the risks for the policyholder.

Casualty

This refers to the loss or liability resulting from an accident, damage, storm etc. The policyholder can then be compensated for the incurred loss of the car from such incident. This is usually done as a claim and carried out by the adjuster.

Casualty is often one of the major causes of a claim by the policyholder. When there are more casualties there will likely be more claims but when there are few casualties there will most likely be few claims. But this is mainly based on the policyholder’s qualification of the conventional liability coverage.

Claimant

This is someone who gives a notice to an insurer for an incurred loss. This is usually done for the main purpose of collecting a claim from the carrier to cover or reimburse the incurred loss. Then insured will be covered with the claim as based on the terms and conditions of the insurance company.

In most times the claim may be lost on the event of an incurred loss if the policyholder is no longer an active customer to the insurer. This is to motivate the assured to be regular in paying his premiums as this will be helpful in the event of an incurred loss.

It is reasonable for a claimant to submit a claim for incurred loss coverage as long as he/she is still an active customer of the insurance company. Most often, the insurers do not offer claims to the insured unless on the event of an incurred loss.

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Coverage Forms

These are legal documents attached to an insurance policy to put into effect the coverage of the policy as provided by the insurance company.

These forms are really necessary for a good insurance coverage as it will determine the effectiveness of the insurance policy.

The endorsement form shows the legal and coverage status of the policyholder as issued by the insurance company.

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