Extended Coverage

This is the inclusion of endorsement of an insurance policy to provide coverage for risks in addition to those covered under the basic policy provisions.

The inclusion of this endorsement is fully dependent on the policyholder. It is entirely left for the assured to decide if he/she ever wants an additional coverage for properties.

It is only recommended for persons whose circumstances put them in the track of an additional coverage and who can really afford the cost of it.

Exclusions

These are items that are not eligible for insurance coverage under the terms of an insurance policy. The insurer does not provide coverage for such items because they are not applicable to the insurance terms.

For example, an auto insurance company may have to provide collision coverage for damage caused by collision but do not provide insurance for damage caused by tear and wear etc

Ensure you understand all the terms of your insurance policy before getting coverage from them. This will put you in a better position to avoid unnecessary acts that do not call for coverage.

Endorsement

This is a document stating the agreed status of a policyholder attached to an insurance policy for the subtraction or addition of an insurance coverage.

It could be essential for any auto insurance policy to be effective. When you have this written agreement attached, your agreed status takes precedence in the policy.

Make sure your insurance policy have the document attached for completeness of your policy and for it to properly be in force.

Driver Education Credit

This is the reduction or discount on auto insurance premiums for which young drivers become eligible upon completion of a driver education course.

This discount is meant for those drivers who would generally not meet up with the regular or usual amount of premiums as billed per month.

In most states, the age limit for those eligible for discount ranges from about 45-50 years.

Generally, the premiums paid by these drivers are lower than that paid by other drivers who are not eligible for this credit.

The driver education program has really made a big impart on the lives of average drivers and the auto insurance industry; creating more insured individuals on reduced premiums and improving the standard and level of auto insurance companies.

Driver Education

This is a professional educational course, often state accredited, for eligibility of drivers for discount on auto insurance premiums. The duration of education largely varies as may be determined by state law.

The students of such education are entitled for driver education credit which gives them the qualification of a premium discount.

The amount paid as premium by drivers of such course are quite different from those who have not undergone such educational course.

Depreciation

This is the drop or reduction in the value of an item or property over time. There are a number of factors affecting the reduction of the actual value of a property. These include collision, as can be seen from that experienced by car drivers.

Another factor affecting the drop in value of an item is accident. Not unusual for car drivers, but it can greatly reduce the market value of a car or any other property.

Some auto insurance companies do not offer coverage for value reduction of a car, but can provide insurance coverage if such is caused by factors that are insurable, e.g. collision, accident etc

If you intend to have your car insured when its value is reduced by an insurable factor such as collision, then you are to have your car insured under the collision coverage of your insurer.

Deposit Premium

As the name implies, it is the payment for an insurance policy by an individual considered as a prospective policyholder after applying for an insurance policy.

Insurance contract are usually followed when the individual's application is finally reviewed and accepted. For most insurance companies, the least premium that can be paid as at the time of application for the insurance policy is per month.

The validity of premiums deposited can be determined by the number of months allocated for such premiums and the duration an assured is covered as at the time the policy is in force.

Discount

It is the abatement of premiums of the insured for meeting up certain requirements or criteria. The policyholder may be entitled for some benefits and coverage which may not be generally issued to others covered under the same policy.

The reduction rate of premiums is mostly different from one insurer to the other, and depends on the type of policy of the assured.

Most insurers would grant the benefits of high loss reduction rate and increased policy limits or claim for their assured.

Some auto insurance companies may have specific period when they offer to reduce the premiums of their policyholders when these qualify or meet up to the requirement.

Declaration Page

This is the part/page of an insurance policy or contract which contains all vital information pertinent to the insurance policy, such as the name and address of the insured, the dates of commencement and ending of the coverage, the duration and amount of coverage, applicable and payable premiums, name and address of insurance company, the name and description of insured property, and the actual location of insured property.

In order for your (auto) insurance policy to run smoothly, it is strongly recommended that you strive to complete all required information needed on the basis of your insurance policy. Do not be surprised that things may not actually go well during the time your insurance policy is effective when there is failure to do so.

Typically, an insurer will most certainly demand all details you are expected to submit. This makes up your unique and special declarations that can easily be stored on the database of your insurer. It is much like registering in an institution, which is very vital for your membership status.

Among the numerous reasons for this is due to the fact that most policyholders have actually missed out on their claim they are expected to receive due to none or incorrect details of the insured name and address as well as the name and description of property which may have a negative bearing on your policy.

Declination

This is the refusal of an insurer to insure an individual under a policy after careful assessment of the application for insurance and any other germane factors. Typically, an auto insurance company would prefer to provide coverage for an insurer with good credit.

However, not all state or insurance companies would condone any form of declination just for some reasons, especially for a reason of poor credit. They may be kind enough to offer insurance coverage directly or indirectly to those with poor credit as in the case of others having good credit.

Refusing to insure an individual may most likely lead to lack of insurance benefits and protection (coverage) from an insurance company. The cause for disqualification of these individuals is as seen and assessed from the individual's insurance application.

The cases of declination are not limited to the auto insurance industry. It is also applicable to other fields of insurance. It may be a sad experience for someone who yearns for an insurance coverage only to be disapproved after the evaluation of applications.

There are appropriate steps that you can take to ensure you are not restrained or disapproved from getting that coverage you desire. More details will be given on these and other important information from future posts on this blog.