The Basics Of Motor Insurance
With so many different insurance firms and insurance plans from which to choose, obtaining motor insurance can be quite a difficult and frustrating exercise for many people! There are lots of insurance terms and phrases that form part of an insurance contract – I am sure that many people just close their eyes, sign on the dotted line and hope for the best.
It is however best if you have a basic comprehension of motor insurance terms. You can discuss the terms and conditions of the insurance plan with an agent or your broker, or you can browse the world wide web and familiarize yourself with the most often used motor insurance terms. I am not suggesting that you need to become the next insurance wizard, but having a basic comprehension of the insurance language might turn out quite handy! Let’s have a look at a few terms that begin with the letter “A”:
Act of God: There are certain occasions when you won’t be able to claim from your insurance policy. Should you suffer loss or damage because of an event that is beyond human interference, such as a hurricane, tornado or earthquake, this can be seen as an Act of God. Most motor insurance companies do offer insurance for these situations, but it is vital that you realize that it does not automatically form part of all insurance plans. Acts of God are likely to be covered as part of a fully comprehensive policy. This differs from one company to another and should clearly be specified in your insurance contract.
An Actuary: This is the term for an expert person who is responsible for analyzing, assessing and dealing with statistical information in the insurance industry. An actuary has many important tasks and is a crucial role player in the success of any insurance provider. These specialists need to continually access any insurance trends, locally as well as internationally, to make sure that they are delivering services at the best premium prices or rates while also keeping an eye on other business and financial risks.
An Assessor: An assessor mustn’t be mistaken for an actuary as they perform totally diverse jobs. An assessor is sent out by an insurance company to inspect the specific damage once a claim is received. Not all claims are inspected by an assessor, but if an insured is attempting to put in quite a substantial claim the insurance company needs to protect themselves by making certain that the claim is reasonable. In many cases people try to claim for a new vehicle from their motor insurance, while the motor vehicle can in fact be repaired at a fraction of the price!
Agent: An insurance agent is not an insurance broker. An insurance agent is employed by a specific insurance provider while a broker usually works individually. Many brokers can also offer a wide range of services, from motor insurance to household and life cover, while an insurance agent can only offer the services and products of their specific businesses.
Start with familiarizing yourself with the terms above – you will soon understand that motor insurance is not as difficult as you once believed!
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