Car insurance is just a way of making compensation available to an individual who has suffered a loss or other misfortune consequently of a motor vehicle accident. With regards to payment, this compensation is provided from a swimming of funds that is composed of the premiums of other policy holders. Put simply, the losses of the few are met by the contributions of the many.
you are able to elect to see the company with which you are (or plan to be) insured as a necessary evil, or you are able to regard it as a partner able (and obliged) to help you should you ever be unfortunate enough to be concerned within an accident. Knowing and understanding your "partner" and learning the ins and outs of the connection you've together is obviously the initial necessary step towards making probably the most of (and getting the best out of) your agreed contract. Seeing things from your own perspective, knowing your legal rights and responsibilities as an individual, and seeing things from the company's perspective, understanding their legal rights and responsibilities as insurers, will help you deal more effectively with any issue that will arise.
How does car insurance operate?
All insurance companies are professional risk takers. Car insurance companies calculate the price of insurance so that they have a large enough pool of money from which to pay out any claims made against them, while still making enough money to prosper as a business. Various factors determine the reasons for big differences in premiums. For instance, an older driver will not pay around a younger driver, an experienced driver around an inexperienced driver, a new driver with a clear record around a new driver by having an accident record or that same young driver by having an accident record who also happens to be driving a car with a high-powered engine. Put simply, the higher the danger of a loss to the insurer or an accident for you, the driver, the higher will be the cost of insuring the car. It is in these areas where insurers make shrewd business calculations employing their expertise and experience to determine margins and probabilities, always charging more that what might be needed to ensure that, whatever their liabilities, there will be the likelihood of a profit.
Indemnity insurance ensures that the insurance cover can pay the amount necessary to place you in the exact same financial position as you were ahead of the claim was made. This can be a technical term insurance companies use to mean that they will recover your damage skrotpræme bil. You might hear or read inside the policy statements expressions like "we will indemnify you for these damages" ;.Indemnity insurance begins to work from the particular time identified in the policy to which you have agreed and for which you have paid the mandatory premium.
The premium you pay for indemnity insurance is decided by:
• the likelihood of a loss depending on the attributes of the drivers, the vehicle, and the danger address (more on risk address later in insurance factors)
• the cost accrued in the event of a loss (e.g. repair, legal costs, temporary arrangements such as for instance courtesy car etc.). Regulations requires the insurer to supply the insured with a certificate of car insurance that specifies the type of the cover provided.