A Contract between a Vehicle Owner and an Insurance Company

Your auto insurance policy is a contract between you and your insurance company. He explains: “Example: Let`s say your auto liability insurance caps at $50,000/$100,000 for bodily injury in the event of an accident. In this case, your insurance will not pay more than $50,000 for one person. He will not pay more than $100,000 for an accident. Agent – A person or organization authorized to sell and maintain insurance policies for an insurance company. Statement page – Usually the first page of an insurance policy. It lists the full legal name of your insurance company, the amount and type of coverage, deductibles and insured vehicles. Most states require drivers to have auto liability insurance before they can legally drive a car. (Liability insurance pays for the other driver`s medical, car repair, and other expenses if the policyholder is to blame for a car accident.) All states have laws that set the minimum amounts of insurance or other financial guarantees that drivers must pay for damage caused by their negligence while driving when an accident occurs.

Most auto insurance policies are valid for six months to a year. Basic car insurance consists of six different types of coverage, each calculated separately (see below). By law, the following limits are the minimum insurance limits for a standard auto insurance policy. You need to have as much coverage. Supplement – Supplement added to the premium by an insurance company. This usually happens because an insured driver has had an accident or moving violation that is their fault. This coverage covers damage to the policyholder`s car caused by a collision with another car, object or as a result of a tipping. It also covers damage caused by potholes. Collision insurance is typically sold with a deductible of $250 to $1,000 – the higher the deductible, the lower the premium. Even if the insureds are responsible for an accident, collision coverage reimburses them for the cost of repairing the car minus the deductible. If the policyholder is not at fault, the insurance company may attempt to recover the amount it paid from the other driver`s insurance company. If the business succeeds, the insured will also be reimbursed for the deductible.

Floods, earthquakes and nuclear radiation are typical examples of dangers excluded under a homeowners` policy. A typical example of an excluded loss under an auto insurance policy is damage caused by wear and tear. Examples of property excluded under a home insurance policy include personal property such as a car, pet or plane. Este folleto está disponible en español en nuestro sitio web en insurance.ca.gov. Seleccione Traduce español en el lado derecho de la pantalla. Seleccione la ficha consumidores elegir tipos de seguros, luego seleccione automóvil. An insurer may change the language or coverage of a policy at the time of contract renewal. Endorsements and endorsements are written terms that supplement, delete or modify the terms of the original insurance contract. In most states, the insurer is required to send you a copy of the changes to your policy. It is important that you read the endorsements or endorsements to understand how your policy has changed and whether the policy is still sufficient to meet your needs. Endorsements are generally used when the terms of insurance contracts need to be changed.

They could also be issued to add certain conditions to the directive. Claims Adjuster – The person at your insurance company who investigates and assesses your damage and loss. Let`s say you don`t know that your grandfather died of cancer and therefore didn`t disclose this essential fact in the family history questionnaire when applying for life insurance. it is an innocent secret. However, if you were aware of this essential fact and deliberately hid it from the insurer, you are guilty of fraudulent secrecy. If you fail to register a “regular” operator or licensed member of the household, your insurance company may refuse to pay your claim, even if you were driving at the time of the accident. Premium – The amount you pay to purchase an insurance policy. You can usually “exclude” any member of the household who does not drive your car, but to do so, you will need to submit an “exclusion form” to your insurance company. Drivers who only have a study permit do not need to be registered with your policy until they have obtained their full licence. An auto insurance policy is a contract between you and an insurance company.

You agree to pay the cost of the insurance policy, called premium, and to comply with the rules set forth by the insurance company. In return, the insurance company agrees to bear certain costs related to an accident or other covered losses. Auto insurance helps pay for injuries and damages that can occur if you own and drive a car or other motor vehicle. This brochure can help you compare policies and make informed decisions when buying auto insurance. It can help you understand your car policy. Your policy is a legal document, and it`s important that you understand it. Your motor vehicle can be a car, truck, van, motorcycle or any other type of private passenger car. In many accidents, both drivers share responsibility. The policy, insurance companies or courts rule on comparative negligence. It indicates the share of responsibility of each driver.

A premium is the amount you pay to the insurance company to purchase your insurance policy. The premium covers the duration or duration of the policy. The duration can be 6 months or 1 year. Basic personal auto insurance is mandatory by most states and offers you some financial protection in the event of an accident. But is that enough? What are the possibilities? Find out how car insurance works and what types of coverage are available. (For more information on claims, see “Shop for Auto Insurance” and “How does the 80% rule work for home insurance?”) Limit – The more money your insurance company pays for your loss. Recourse – When an insurance company pays money for a claim and then attempts to be reimbursed or reimbursed by another insurance company. .

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