How to Save Money in your Auto- Insurance Policy

It doesn’t have to cost you so much to get car insurance or any other insurance for that matter. Having an insurance policy on your car insures that you will be paid when you are involved in an accident or your car gets stolen or damaged.

This is usually known as car insurance, motor insurance, vehicle insurance or auto insurance. Now getting insured by an insurance company will not cost you much if you know what to do.

Things like making sure you are a good risk. That is making sure that insurance companies will rush over each other to have you on their list. That is called making yourself a preferred risk.

You can also increase your potential by taking some driving lessons to up the ones you have already. You can choose a course in defensive driving or another program that is designed to improve your driving skills.

When you are taking you driving lesson it is so much better to go to recognized driving schools in town. Go to well known, government approved centers. You can also check and get the ones recommended by most insurance brokers.

This will insure that you look good to the insurance companies. Again you will get lower rates once it can be proven that you have completed such course.

Now another thing you can do that will really help is to make sure you are not duplicating content. See some insurers offer a combination of insurance packages to you once you register with them.

Example if you register for house insurance, you might check boxes in the forms that indicate you want them to take care of your car, health and life also. So check and crosscheck your insurance particulars to make sure you are re-registering for what you have already paid money for somewhere.

Understand this, before you sign those papers for your auto insurance, go home and check up on your health insurance policy and make there is no provision for car protection there. You’ll save a bunch dong this.

These and many other tips will help save a lot of money as you embark on protecting yourself against any unforeseen and sudden danger or damage to your vehicle.

6 Tips that will get you Insured

There are many tips that will help you get insured easily. These are usually the characteristics or properties associated with you and your things that the insurance company will look at and accept you. They are:
1 Defined Loss: If the loss you want to insure is a definite loss, one that is sure to happen, then you can qualify. This is the loss that can take place a t a known time, known place and from known cause or source. Example is death of an insured person on a life insurance policy, fire, automobile accidents, and worker injuries all easily meet this criterion. But these types of losses may only be definite in theory like occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable
2 Affordability: If the cost of insuring your house or property or any her thing is too high then you might not be insured. The cost need to be reasonable. Not too low and not too high but especially not too high so that the insurance company can pay when the time comes. So the premium shouldn’t be expensive.
3 Similarity: there should be similarity in the exposure or risk that seeks to be insured. That is your risk should be lik what obtains else, your own should not be too different from others. Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses
4 Accident:Of course this is obvious. Remember when we were discussed insurance, we said that insurance is used to guard against the risk of an uncertain, sudden and unpreventable loss. (check older articles).This simply means that its used to guard against accident. So your loss should be an accident for it to qualify. The event should be fortuitous, or at least outside the control of the beneficiary of the insurance.
5 Calculated: Your loss shouldn’t only be accidental loss to qualify but it must also be a calculable loss. At least these two elements should be quantifiable and at least estimable: the probability of loss, and the attendant cost. An indeterminate loss does not constitute as a trigger for an insurance claim.
6 Large payment: This simply means that the size of the loss should be large to merit a big payout. So that you shouldn't run to the company when you’ve lost your pen or your singlet was stolen. Insurance premiums need to cover both the expected cost of losses, the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims.

More on Insurance

Insurance companies are financial institutions that deal with insurance. The industry which encompasses the insurance companies is mainly concerned with providing protection against financial losses resulting from a variety of hazards. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accidents, theft of property, and fire and storm damage; medical expenses; and loss of income due to disability or death. This mans that the insurance is responsible for getting you another car, house or whatever it is you have insured. In the case of life insurance, the company pays your money to your next of kin. That is why they usually ask of the name of your next of kin.
This industry of insurance consists mainly of insurance carriers and insurance agencies and brokerages. Generally insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers. While some of agencies and brokerages are directly affiliated with a particular carrier and sell only that carrier's policies, many are independent and are thus free to market the policies of a variety of insurance carriers.
Furthermore the insurance industry includes establishments that provide other insurance-related services, such as claims adjustment or third-party administration of insurance and pension funds. These other insurance industry establishments also include a number of independent organizations that provide a wide array of insurance-related services to carriers and their clients like the processing of claims forms for medical practitioners, loss prevention and risk management. Also, insurance companies sometimes hire independent claims adjusters to investigate accidents and claims for property damage and to assign a dollar estimate to the claim.
Nomenclatures in Insurance
Premium: This is the amount of money you pay an insurance company for an insurance policy. This specified amount is paid regularly to the company.
Insurer: This is the insurance company that offers insurance against loss or damages. They promise to pay a specified amount to the insured to compensate for loss the insured may have in the future.
Insured: If you go to an insurance company to be insured against accident, burglary, theft, bodily injury and many other you are known as the insured in insurance terms.
Brokerage: This is the charge or commission an insurance broker charges you for services rendered to you.
Broker: This is also known as an insurance agent. It is him or her that you deal with in an insurance company. For any questions or comments or explanation about your policy you ask him or her.
Risk: Risk simply means the possibility of meeting danger or suffering los or harm. In insurance, it is usually a person or thing that is a source of risk.
Policy: A set of ideals, a plan of action, proposed or adopted by a government, political party, business or corporation is a policy. In insurance it is the terms of a contract of insurance.

Know about Insurance

This has to do with risk management; insurance is used to guard against the risk of an uncertain, sudden and unpreventable loss. Now to the definitions, according to wikipedia our online dictionary, iinsurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. Insurance involves pooling funds from many insured entities (known as exposures) in order to pay for relatively uncommon but severely devastating losses which can occur to these entities.

Doesn’t sound like I’m speaking English right. Ok, I translate. It simply means that insurance is a way for you to guard against loss of something precious to you. For example if have an accident, you’ve lost your car, if there is fire outbreak at home, you’ve lost the house. So to guard against the money you will lose from theses accidents, you need insurance, you’ll engage an insurance company to get your money back. Now instead of loosing out entirely and maybe waiting for a pay raise or looking for a new job with so you can buy another car or going to take another to buy a new house your insurance company takes care of that. The insurance company will replace your car or house or whatever it is you have lost.

For this work money must have exchanged hands, I mean you will have put down some money in the company’s coffers. Because they are Father Christmas that gives anybody that has accident money to get another vehicle. You have to be putting money in an insurance company, an agreed amount each day, week, month, biannually or yearly. Then in the event of a sudden and unpleasant happening the insurance pays you money. With the money you can replace what you have lost in the sudden happening. You can get yourself a new car or buy a new house.

Now this doesn’t mean you can lose your car or burn your house through carelessness and even deliberately and expect to get paid. No, it doesn’t work that way. The insurance company will do a thorough investigation on the accident before parting with their money. They have to be sure that they are wisely spending their money.

It is not everything that can be insured, there are some things that can be insured while others cannot. But the popular things that can be insured are house, car, life, etc.