Before signing an auto insurance contract, we are involved in
understanding some basic terms related to the car insurance policy.The
phrase "your covered auto" also applies to several other particular
circumstances.
Usually, physical damage coverage will apply to newly acquired vehicles
(whether additional or replacement vehicles) only if you request the
coverage within 30 days of the acquisition. However, liability coverage
for a replacement vehicle is automatically provided until the end of the
policy period.
The liberalization clause states that if the insurance company makes a
change to its policy form which provides broader coverage without a
premium charge (for example, if it drops a policy exclusion), that
change will automatically apply to your policy on the date the change
goes into effect in the insured's state. This simply eliminates the need
of the insurance company to endorse all existing policies when coverage
is expanded without a change in premium.
Cancellation is an important issue. In most states, the reasons for
which an insurance company is permitted to cancel a policy are
limited-if the policy has been in effect for at least 60 days or is a
renewal policy.
The general agreement is a very brief statement. It means simply that
all of the remaining provisions of the contract (the policy terms)
apply. The reason that the general agreement is so brief is that each
coverage section contains a much more detailed insuring agreement.
Exclusions involve some of the most heated-and most often
litigated-disputes over insurance language.Some exclusions exist simply
to remove coverage for above-average risk factors which are not
anticipated in average rates and premiums, and that the coverage is
often available for an additional charge.
This is the case with respect to audio, visual and data equipment and
the tapes, records, and other media used with such equipment. The basic
policy form excludes coverage because these are items of value which
have an above-average exposure to theft losses (they are easily removed
and are often targets for thieves).
On the other hand, some people want specific drivers excluded from
coverage. These special exclusions have become increasingly common in
recent years.
Liability is probably the most important kind of automobile insurance.
It covers moneys owed when one automobile driver causes bodily injury to
another person or damage to another person's property.
read more / http://www.workersinsurance.blogspot.com
