1.Make Clear Your Insurance Policy
Typical insurance policy consist of the following paragraphs:
1. The declarations page provides information about the individual purchasing the policy; the
dollar amount of the policy; the type, extent, and cost of coverage; the date and time coverage
begins and the date the policy expires.
2. The insuring agreement includes losses the policy will cover and provides for your legal
defence up to the policy limits.
3. The exclusions say what the policy will not cover, sometimes referred to as the “fine print.”
Typical exclusions are:
• Intentional damage to your own automobile.
• Damages caused when your automobile is used as a public or delivery vehicle, unless your policy states that it will be used for this purpose.
• Damages caused while your automobile is being driven by employees of a garage, parking lot or auto sales agency.
• Household drivers who are excluded from coverage. Make sure you read and understand all exclusions in the proper way. If you have any doubts ask your agent to explain what you need.
4. The conditions enumerates the rules of the auto insurance policy and your duties in case of loss. Usually you are required to:
• Report the loss to your company as soon as possible.
• Use reasonable care to prevent further damage to your car.
• Give reasonable cooperation to the company.
• File proper proof of loss with the company.
• Forward all documents of lawsuits under your policy to your company.
If you broke any rule listed in the conditions, any claim you file may be put at risk. Remember your responsibilities in any case and consult the conditions section of your policy immediately upon incurring any loss.
5. The endorsements provides with any changes in coverage that were added to your insurance policy. It should be typed on a form called an endorsement and attached to your policy or included with your renewal notice.
6. Any premium notice increasing the premium as a result of accident claims have to give the specific reason for the increase and the percentage or dollar amount of the increase.
Remember, an insurance policy is a legal contract. Read your policy carefully to make sure you
understand all of the provisions. Ask your agent/producer to explain anything you do not understand. If your agent cannot explain the policy to your satisfaction, contact the Department of Insurance, another agent/producer, or the insurance company directly.
2.No Claims Bonus
To describe the number of years you have had Car Insurance without making a claim a term No Claims Bonus is used. For example, if you have had Car Insurance for 4 years and you have not made a claim in that time, then you have 4 years No Claims Bonus.
The single biggest factor affecting the cost of your Car Insurance premium is probably No Claim Bonus. Each year that goes by without you making a claim is another year of No Claims Bonus. In general, the more No Claims Bonus years you have, the cheaper your premium will be for the car you need to insure.
It is because car insurance companies can see that your history regarding making any claims is a good one. If you want to alter your provider, Car Insurance companies will usually ask you to prove your No Claims Bonus in the form of a renewal notice or a letter from your current Car Insurance company.
If you don’t make a claim for several years, but then make a claim, the Car Insurance company will usually apply it's rules of how much to knock back your No Claims Bonus Years. Several car insurance companies such as Accept Direct offer to protect your No Claims Bonus for an extra fee during the quotation process. If you have a full no claims bonus, it can also entitle you up to 75% discount on your car insurance premium.