Terms Related To Auto Insurance

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Auto Insurance is insurance for cars, trucks, motorcycles, and other road vehicles. The primary use of auto insurance is to provide financial protection against physical damage or bodily injury resulting from traffic collisions. It also provides protection against liability that could arise due to it. This term varies with legal regulations in each region. Have a look at http://www.signatureinsurancemi.com/ ,if you want to consult independent insurance agents Michigan.

There are several terms that are related to auto insurance. The benefits of learning and knowing these terms cannot be over-emphasized. It not only builds our basic knowledge but stand as a key factor for choosing the right insurance policy for our car. Some of the terms are as follows:

1) Carrier

An insurance company underwrites and issues an insurance policy to policyholders. Each insurer has its own policies worldwide and has their own method of operation according to local law, custom and economic level of the state or country at large.

2) Casualty

Casualty is often one of the major causes of a claim by the policyholder. When there are more casualties there will likely be more claims but when there are few casualties there will most likely be few claims.

3) Coverage Forms

These are legal documents attached to an insurance policy to put into effect the coverage of the policy as provided by the insurance company. These forms are really necessary for a good insurance coverage as it will determine the effectiveness of the insurance policy.

4) Competitive Estimate

In the auto insurance sphere, it refers to the request made by an insurer to a policyholder to submit more than one repair estimates to meet his/her needs.

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