The car insurance involves the payment of compensation in case if your car has got any damage. Bur you should remember that payment of compensation will happen not in every case and it will not always be in the amount you are expecting. To avoid an unexpected disappointment you should remember that car insurance contract […]
The car insurance involves the payment of compensation in case if your car has got any damage. Bur you should remember that payment of compensation will happen not in every case and it will not always be in the amount you are expecting. To avoid an unexpected disappointment you should remember that car insurance contract includes the list of cases in which you will get refund as well as the method of calculation of the compensation sum.
The car insurance contract is a bilateral and it should be concluded in a written form. The parties of the contract are the insurer and the insured but third parties and beneficiaries could also be recognized as the parties of the contract.
The insured person may conclude the contract in favor of third parties – beneficiaries but this does not relieve him from responsibility under the contract if his obligations are not fulfilled by the beneficiary. Insurance companies may require the beneficiaries to fulfill their duties under contracts of insurance if they are not fulfilled by insurers.
The beneficiary may be replaced by another one only if he has not fulfilled any obligations under the contract, otherwise the insurer loses such a right.
The sum of the insurance is established by the agreement of the parties and is specified in the contract (policy). It can not be higher than the insured value of the vehicle.
The amount of insurance premium (payment for insurance) is calculated from the values of the sum of insurance, the insurance period, the base rate and adjustment factors that take into account the specific insurance conditions and procedures for payment of insurance premiums.
In the insurance contract the parties may establish a franchise – the amount of not recoverable part of the loss. It can be either conditional or unconditional. The conditional franchise is the franchise under which the insurer does not cover loss which does not exceed the amount of the franchise but covers it completely if the loss exceeds the amount of franchise. The unconditional franchise is the franchise under which the insurer shall cover the loss minus the sum of franchise.
Usually the car insurance contract is signed for one year but it could be concluded to another term by mutual agreement of the parties. The insurance contract comes into force at the time of payment of insurance premium or the first contribution if another conditions are not specified.
Preterm termination of the insurance contract is possible under the following circumstances:
– If the possibility of an insured event and the existence of risk has passed away due to circumstances other than insured ones. The insurer returns the unearned premium for the unexpired term.
– If the Insurer has fulfilled all his obligations under the insurance contract.
– If the Insured renounced the contract anticipatorily. In that case the contract is terminated from the date specified in the written notification.
Have you heard that the info about car insurance can assist you a lot in taking care of lots of problems with finding car insurance quotes?
Yes. This is really doable. Read more about “cheap car insurance” topic, how you can get great offer and how to use this info with maximum effect.
Nowadays we are living in the world where knowledge makes life easier.
That is why if you are properly armed with the information in your topic you can be sure that you will in any case find the solution to any bad situation. So, please make sure to get back to this blog on a regular basis or – best of all – sign up to its RSS feed. Thus you will have your hand on the pulse of the freshest informational updates here. Blogging can be helpful, you just need to know how to use blogging to help you in finding the best car insurance propositions on the market.
