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When it comes to car insurance, there are some terms you should be familiar with.

When it comes to car insurance, there are some terms you should be familiar with.

Some of the car insurance conditions that everyone should know. Read this article to learn more about it.

Table of contents
Terms that are commonly used
Outstanding
Physical injuries
guarantee
Insurance
Access
restriction 
Permissible pay
Depreciation
claim
Insured declared value (IDV)
Non-claim bonus (NCB)
Third Party Policy (TP)
Special Damage Policy (ODP)
Inclusive Politics
Take away

Most car owners get a car insurance policy based on their coverage and premium but do not understand their terms and conditions because they do not know some of the terms included in the policy papers on Cars. Finally, this makes it difficult to implement the policy. As a reason, it's good to recognize the most common car insurance terms before buying coverage. Let's take a look at some of the most widespread vehicle insurance conditions so you can make an educated choice.

Terms that are commonly used

The terms of the vehicle insurance plan.

Outstanding

The amount of money that insured persons must pay to the insurance company in order to cover it with the policy.

Physical injuries

Any form of injury, illness or death caused by a car accident.

guarantee

The term "insured" refers to the individual covered by a vehicle insurance policy.

Insurance

The insurance company that offers coverage for the payment of premiums.

Access

Car insurance policy coverage refers to the features and benefits you offer.

restriction 

Refers to the maximum amount of insurance or protection that the insurance company will provide.

Permissible pay

Is the amount of repair or expenses that the insured must pay before the insurance company pays during the settlement of the claim.

Depreciation

Consumption is the term used to describe the decline in the value of the insured car as it ages and erodes. It climbs at a steady pace with the life of the car, reducing the insurance company's claim payments.

claim

If the covered car of an insured person is damaged or stolen as a result of an accident or event, he or she can file a claim. The claim is an amount you want your insurance company to pay to compensate you for your loss.

Insured declared value (IDV)

IDV is the current market value of the insured vehicle, which decreases with age. In the case of car theft or total loss, the amount agreed between the insured and the insurance company will be paid.

Non-claim bonus (NCB)

Insurance companies reward policyholders who do not file a claim throughout the year of the policy with NCB. Increases with each year of claims-free service and can reach 50%.

Third Party Policy (TP)

Third-party vehicle insurance is the basic type of coverage that all drivers are required to receive while on the road. It protects you from financial liability in the event of a third party injury, death or property damage.

Special Damage Policy (ODP)

Damage to the insured car caused by an accident, theft, fire, natural or man-made disaster is covered by its car insurance policy.

Inclusive Politics

The comprehensive car insurance policy protects the insured vehicle and its owner from third-party liability and damages.

Take away

You can move forward, get a more informed policy and make an educated choice now that you have a better understanding of the most common car insurance conditions. Using the above information, you will be able to decipher the processes/results described in the car insurance policy papers. It is important to read your policy papers accurately and, if necessary, get an explanation from your insurance company.

READ ALSO - What factors affect car insurance premiums for SUVs and sedans?

Disclaimer: This article is published in the public interest and is intended solely for the purposes of public information. Readers are advised not to rely on the contents of the article as crucial in nature and should conduct further research or consult an expert in this regard.

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