Get familiar with 10 A’s of Auto Insurance before purchasing

1. Get familiar with 10 A’s of Auto Insurance before purchasing

2. Knowledge of the subject decides whether we are getting success on it or not. Raw knowledge or an improper knowledge leads us to failure in business or any other aspect of life. This same concept is applied for the insurance policies as well; if we take policy without knowing how exactly it works we will not get its real benefits. Every time we hear that before purchasing any insurance policy we should read the policy document carefully, so that in future we don’t feel betrayed. So if you are planning to buy an auto insurance policy, take some time and get familiar with these basic terms.

3. Adjuster or claim adjuster • The key responsibility of adjuster is to make investigation of particular casualties. Apart from this he is also suppose to clear payments of claimed policyholders after evaluation. Commonly they are known as claim adjuster in insurance term.

4. Accident • Accident is an unpredictable moment. It can happen to anyone and anywhere, hence we can say this moment is out of control of the insurance holders. One can claim for their loss from their insurance company and get relief during unpleasant situations. How much amount should be paid by the insurance company depends upon what is observed and the actual value of vehicle.

5. Actuary • Actuaries are the one who perform the calculative tasks and hence play an important role in the insurance industry. Their work is focused on following area. • To compute premiums plus risk of the insurance. • To calculate loss reserving, accident persistence. • Plans how to make profits and financial stability to company • Plans to maintain balance so neither the company nor the insured person face unnecessary loss.

6. Accident frequency • The term accident frequency is used to determine the number of times there is the possibility of having accidents. This is calculated by the actuary while deciding insurance policy. The main objective of this calculation is to bring the raw stats which will be helpful to judge the possible loss. This whole concept is run on prediction.

7. Appraisal • Appraisal is the estimation of the insured property, it is a written agreement. Insurer can claim for this in future at the time of loss or damage of his property. Although, it depend later who so ever will be responsible to pay the claim either insurance company or the vehicle repair experts.

8. Agent • Agents are the middle men; they are licensed representatives of any insurance company. Their solo responsibility is to sell the policy of the insurance company and in return they get good commission.

9. Additional insured • As the name implies to insure anyone other than policyholder, this coverage can be limited for one time or can last for the lifetime. At the time of accident the additional person or company can take the benefits of this policy.

10. Agreed price • This is an agreement between the adjuster and the dealer of the repair body shop. In this they fix some price to repair the damage of the vehicle. This price can neither be decreased not increased in future and both have to work on committed price.

11. Agreed value • This term is applicable for the one who own a classic car or looking for amendment on the current policy related to real estate .In this there is a discussion between the car owner and the insurance company and they mutually agreed on specific amount which will be paid out at the time of accident.

12. Assigned risk plan • Assigned risk plan is managed by the state, this plans is meant for those people who are not in a condition to buy insurance policy either by financially incapability or because of their bad insurance records.